Replies to post #56046 on Advanced Micro Devices Inc (AMD)

[aleph0]

"Most of AMD's sales aren't at retail."

I presume you do not include WBMakers as retail.
The WBMakers are the largest part of AMD CPU sales from what I have read and seen over the "previous" years ( may be changing now ).
Typically, trays of CPUs are bought buy the WBMakers.
The prices are passed on to the customers with a small mark-up ( 5-10%).
The tray-price is the price-watch "public" price as far as I can tell.

I am in close contact with a small WBMaker ( friend of mine ) in Germany.
95% of his sales are AMD based.
He occasionally gets a Xeon customer wanting a 19" server.
Ca. 1 in 3 of them turn to Opteron after taking his advice.
..but the other 2 want to stay with Xeon.

His remarks were "those are the ones that are frightened of hardware, because they don't understand it. And that means 'no changes' please. A type of 'head in sand' mentality" .. unfortunately.

I've Emailed AMD a few times, suggesting they should provide their WBMaker-types with "printed materials" explaing all the advantages - more of a sales pitch than technical.
No answer of course !

[dacaw]

Athlon64 prices are too low.

I agree. AMD's marketing is as technically challenged as their R&D is advanced.

Every management game I have ever played hammered in the idea that you do NOT sell your product too cheap. Its OK to drop prices for a short time to grab market share, like the japanese car industry, but longer term you must get those prices up to finance the corporate and product brand.

Over the years I have followed this company I have concluded that AMD has no clue how to sell CPUs. It does a good job selling flash because that's not a consumer product. AMD has to realize that it IS a consumer product company and act like one.

Put UP the prices and give discount coupons but make sure that P4s are cheaper in list price than Athlon64s else you have an uphill battle to convince buyers, corporate as well as private, that your product is worth anything. Right now even I question the value of the Athlon64 - WHY IS IT SO CHEAP? WHT IS THE SEMPRON NOT PRICED AGAINST THE P4.

I think its time shareholders addressed this issue and threatened to withhold votes until we get some answers.