If these estimates are correct, then AMD must enjoy losing money... wow.
Looking at their strategy, it appears they are working to move agressively to 65 nm, otherwise this does not make any sense at all.... they are still heading for losing Q2, this will just make it worse.
http://seekingalpha.com/article/24929
"So the 50% gross margin plus or minus a few is still our goal for 2007."
How are they going to manage to pull that off with continually tanking prices and Barcelona, in limited quantities, in late summer to come to the rescue?
Q2 Dual Core Prices, various sources
QX6700 - $999
FX 74 - $800
FX 72 - $560
Q6600 - $530
FX 70 - EOL
E6700 - $316
X2 6000 - $238
E6600 - $224
X2 5600 - $192
E6420 - $183
X2 5400 - EOL
X2 5200 - $169
E6320 - $163
X2 5000 - $156
E4400 - $133
X2 4800 - $129
E4300 - $113
X2 4600 - EOL
X2 4200 - EOL
X2 4000 - $100
X2 3800 - $72
X2 3600 - $69
In fact, the Q1 gross margins may fall below 35%, if this happens watch their stock hit 11 or 12 the day after.
That price for the x2 5200 and 5000 sounds nice, I paid 200 for my x2 4200, nows its 110 dolars, I had thought about putting it on ebay and replacing it with a 5000 until the x4 came out, but I feel like i would be cheating myself., cause now i could probably only get 85 bucks for it on ebay
QOTD!Myself, I would pay a little more for the CPU knowing that the extra money was going into future development to give me better products in the future to play with...
In fact, the Q1 gross margins may fall below 35%, if this happens watch their stock hit 11 or 12 the day after.
:lol:Jesus! Can they afford to do that? :?
Two words......Smoke screen.
I think they are trying to keep their market share because they feel that the K10 will be a hit and it will give them increased sale at higher margins.
Maybe they don't want to have to compete with their own outdated CPU's when Agena hits the market? Intel had to with the Netburst processors and it cost them sales on more profitable technology.
I just find the whole thing strange because it is not in reaction to anything Intel has done. I would have figured AMD was gaining Market share and owning the low end with their pricing structure months ago.
Disturbance in the force I feel, meditate on this I will. hehehehe :?
I think they are trying to keep their market share because they feel that the K10 will be a hit and it will give them increased sale at higher margins.
Maybe they don't want to have to compete with their own outdated CPU's when Agena hits the market? Intel had to with the Netburst processors and it cost them sales on more profitable technology.
I just find the whole thing strange because it is not in reaction to anything Intel has done. I would have figured AMD was gaining Market share and owning the low end with their pricing structure months ago.
Disturbance in the force I feel, meditate on this I will. hehehehe :?
Yeah, also --- Mercury Reseach had numbers out that Intel's product mix was roughly 50% dual core and 50% single core, where as AMD was 33% dual core.
As dual core becomes more a standard, it appears AMD may have an over abundance of single core inventory that they simply cannot sell....
Loose argument though as they seem willing to push the dual core prices even lower.
But they have single core A64's, at prices once occupied by Semprons only a few months back.