Replies to post #40068 on Advanced Micro Devices Inc (AMD)

[alan81]

Only works if Intel took a bigger ASP decline than we think
The expectation was gross margin of 60.5%, revenue of 8.1B, which puts expected COGS at 3.2B. GM came in at 59.4%, COGS at 3.27B, and revenue at $8.05B. This means cogs was up $89M relative to GM expectation at 8.05B revenue level. uP cost is around $40, so if the entire COGS shortfall was uP it would amount to about 2Mu. We know this is really not true since Intel did mention they had upside in the other businesses. If we take half we get about 1Mu extra units, on a baseline of around 40mu, puts units up in the nieghborhood of 3%. If units are up 3% then of course to get the same revenue ASP must be down 3%... but of course there is also that $50M shortfall in revenue, so I suspect ASP could be down as much as 5% or so... very rough guess.
--Alan