Replies to post #6976 on Advanced Micro Devices Inc (AMD)

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In past quarters AMD sold a lot of obsolete CPUs into distribution to such entities as Avnet and Arrow. AMD might have been much better off if it had burned them, since it produced very low cost market overhang that had to degrade AMD's potential market.

Once market share is gone, it is gone. GS.

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[KeithDust2000]

DARBES, thank you very much for sharing, I´ll look into it when I find the time. I think our observations complement each other very well.

I´ll take a break from posting now, as I´ll be very busy in the next weeks and don´t expect any surprises until the earnings CC, neither on the financial nor on the product side.

Regards,

[Tim Fowler]

In past quarters AMD sold a lot of obsolete CPUs into distribution to such entities as Avnet and Arrow. AMD might have been much better off if it had burned them, since it produced very low cost market overhang that had to degrade AMD's potential market. My guess is that virtually all of these are now gone.



The answer to the questtion if AMD would have been better of just destroying the CPUs depends on what the people who bought them would have bought had no cut rate AMD chips been availalbe. Would they have brought higher end AMD chips, Intel chips, chips by other companies, or nothing?

I think overall AMD did better by selling them then destroying them. I don't think a lot of the people buying these chips would have wanted to pay a lot more for different AMD chips, they went in to the bottom end market.

Tim