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Taiwan mobo makers positive about AMD $ cuts

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February 14, 2007 3:13:19 AM

Seems that not everyone is unhappy about AMDprice cuts and even see ( 8O ) opportunity!

Digitimes
February 14, 2007 4:03:05 AM

Yup, but if volume of shipments goes up, the margin shrink will be offset.

I find the claims that Vista has boosted PC sales interesting. While PC sales certainly are up, IMO, if balanced against 06Q4 sales, Im guessing a net sum zero gain is realized due to offset sales caused by people holding off on purchases while waiting for vista. But now that vista is out, with the lower CPU prices, I see the possibility for AMD to push the entry level market threshold down and expand its volume....If they can supply the demand AND if manufacturers of other components dont try to take advantage of a possible sales increases.

Thats a bunch of shaky ifs, I know, and it doesnt account for M$s ridiculous pricing of vista, but I think its a very real possiblity. IMO its also ultimately inevitable. Maybe not now, but sometime. The markets themselves are finite, If both AMD and Intel want to keep expanding, sooner or later they are going to have to go after the lower income markets with latest gen hardware. As it is those markets have been toyed with through obsolete hardware, but ineffectively. Additionally, those markets are vastly larger than the markets both AMD and Intel have traditionally targeted. Intel is in a far superior position to assault the low income arena, but at these prices (if only ram prices would come down :roll: ) AMD may be able to establish a toe hold.

Just my opinions, and IMO Im far more worried about barcelonas performance than low margins. If it doesnt perform up to claims or expectations, I think that will cause far more damage to AMD.
!