Advanced Micro Devices Inc (AMD)

[bobs10]

You...

bobs10, remember the times that amd had $60 ASP's? That's about the price of the lowest performing cpu they sell right now, with the more expensive ones a couple of hundred dollars more expensive. That doesn't look like they have to price to sell.

me...

Yeah, acceptance of AMD products has come a long way in the last few years. I suspect that the capacity issues had something to do with this, though having better designs probably was the major reason. Heck, I remember a time when AMD selling good chips for $35.

Only recently has AMD started to evolve out of being basically a boutique producer. For AMD to move on to the next level they now need to increase volume a lot. One of my favorite indicators of how well a company is doing is revenue per employee. When I get some time I'll post more about this, but for now AMD has been able to compete with INTC by doing things smarter and hence with less employees. There's a lot of profitability to be gained at AMD through economies of scale that will only happen with much greater production. With the added volume AMD will have more room to lower prices, etc., etc.