Replies to post #7592 on Advanced Micro Devices Inc (AMD)

[kpf]

(Edit) Elmer

That would be the second version I offered: Backend Costs.
Which one to be used reasonably is dependent from what extent you believe throwing the chips on the market will cannibalize your other sales, what utilization you have plus some other considerations you know better than me.

That is why I offered both versions.

There is an even more extreme version as well: Before even thinking of revenue versus cost considerations, fact is AMD needs every Dollar for revenues it can get for Q2 to keep its miss in limits. So even giving it away for less than incremental costs of backend could make sense.

Klaus

p.s: Glad that you did bite the moderation bullet without any damage. Chapeau. :-)

[8-/]

Elmer Phud, Amazing. We agree on something.

Seems to me that once the wafers are done the money is already spent. If they can sell them for more than the incremental packaging and final test cost then it beats throwing them away. Anything over about $10 bucks cuts their losses.


Cuts their losses, a little. Helps the infrastructure, helps build customer base.

The art of making chips is improved by making chips.

Once market share is lost, it's lost.

Volume is the vaccine...