Replies to post #39807 on Advanced Micro Devices Inc (AMD)

[Dan3]

Re: GM pressure is probably the real answer to the question of 'why no price war?'.

Yes, they're now selling 3 million server CPUs each quarter instead of 2, but at an ASP of $500 instead of $1,200 - and that really takes the margins down.

[out to make money]

Intel has the bottom of the market sewn up. They have a big investment in capacity,and AMD should not play in this arena, unless it is excess to their supply-demand.

On the server side you hit the nail on the head, Opteron is erroding Intel Margins, but they are great margins for AMD.... historically speaking.

Intel are unlikely to destroy(yet!) the top end by a price war, because this would destroy them.