Replies to post #21299 on Intel Corp (INTC)

[P2O I'm from MO]

chipguy:

AMD can always backstop falling MPU ASP and margins
with flash. Oh wait...

They probably won't have to if they get rid of Spansion by
then. :)

There are already indications of rising prices on
Semperons. That should have a net positive effect on ASP's
since they do seem to sell a lot of Semperons relative to
Athlon 64's and Opterons.

Regards,
Mike.

[wbmw]

Re: AMD can always backstop falling MPU ASP and margins
with flash. Oh wait...

I predict that AMD will fight this with massive price drops, along the lines of what they did in 2002. 90nm Opteron single cores will sell for bargain basement prices, and AMD will hope to increase upsell potential for the dual core versions to offset the balance. Either way, next year will be tough on them, and it's no wonder that they resorted to filing a lawsuit in hopes that it would make Intel a little less aggressive in competing next year for market share. However, I don't think it will work as well as they hoped.