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Sharikou's new suggstion for ending AMD's financial woes!

Forum CPU & Components : CPUs - Sharikou's new suggstion for ending AMD's financial woes!

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Mandrake_   04-19-2007 at 07:58:08 PM

Sorry. I couldn't resist. This is just too good. :lol:

Quote :

My RECOMMENDATION to AMD on strategy

To quicken the collapse of Intel, AMD should PERMANENTLY lower the price of desktop CPUs.

Except the FX line, all AMD desktop CPUs should be sold at price between a narrow Window of $50 to $150. Since AMD's APM process is so good, the chips they produce are nearly identical, this allows AMD to mark their CPUs at higher rating.

The pricing table should look like the following
1) Athlon 64: $50 to $60
2) Athlon 64 X2 4000+: $65 but with 10% volume-- this makes sure all Pentium Ds will be sold at lower than $60.
3) Athlon 64 X2 5600+ and up : $85 to $95
4) K10 dual core : $120 to $150

With such a pricing scheme, Intel's ASP will collapse. In less than three quarters, Intel will BK.



Such a sound plan. He fails to mention how AMD is supposed to survive selling it's high end kit for $150. :roll: He also fails to realise it's basically impossible for AMD to win a price war against Intel. A significant portion of AMD's CPUs are still 90nm. Intel is 100% 65nm with way more cash in the bank.

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Wombat2   04-19-2007 at 08:10:02 PM
- 0 +

Someone send him a link showing Intel and AMDs net asset figures.

Hint: After AMD went out of business with this strategy, Intel could still bleed for another 10 years.

http://finance.google.com/finance?q=amd
Total Current Assets 3,963.00

http://finance.google.com/finance?q=INTC
Total Current Assets 17,795.00

Reply to Wombat2
Ycon   04-19-2007 at 08:37:53 PM
- 0 +

Ive got a better plan:

1)
Only produce the highest clocking processors your manufacturing process can deliver and give them away 4free - 100% MARKET SHARE YA HEARD!

Yeh, thats it.

Reply to Ycon
dustbunny   04-19-2007 at 09:11:23 PM
- 0 +

Does this person realize that Intel has $9 billion dollars in cash and short term cash equivalent? In addition, Intel has only $1.8B in long term debt out of $126B in market cap. The S&P credit rating on Intel is A+.

In contrast, AMD has $1.5B in cash and short term equivalent. It's long term debt is $3.7B out of $7.8B market cap. Nearly 50% of AMD's market cap is long term debt. The S&P credit rating on AMD is B+. AMD bonds are basically junk bonds.

So let's compare:

Cash: Intel > AMD
Leverage: Intel > AMD
Ability to borrow: Intel > AMD
Cost to borrow: Intel > AMD

Let's see, in addition, Intel is now now at 45nm processes, which basically reduces their cost to manufacture a die. So that gives Intel more room to cut prices if they need to compete on price while mainaining profitability. AMD has no such luxury.

How in the world does this person believe that AMD can weather a further reductions to ASP better than Intel? If AMD's market share is still eroding with all those price cuts recently implemented, what makes him think that AMD will gain substantial market share by dumping their processors on the market? Yeah, let's cause Intel to collapse. Nevermind that AMD will collapse well before Intel does, but who cares! That's just a minor technicality. Let's cause AMD to collapse even before it gets a chance to launch Barcelona. Good plan.

Reply to dustbunny
jeff_2087   04-19-2007 at 09:13:13 PM
- 0 +

Quote :

How in the world does this person believe that AMD can weather a further reductions to ASP better than Intel? If AMD's market share is still eroding with all those price cuts recently implemented, what makes him think that AMD will gain substantial market share by dumping their processors on the market? Yeah, let's cause Intel to collapse. Nevermind that AMD will collapse well before Intel does, but who cares! That's just a minor technicality.



Welcome to the mind of a fanboy. :D

Reply to jeff_2087
JCon   04-19-2007 at 09:18:32 PM
- 0 +

"This person" lives in Bizarro World where up is down and down is up... Profit is bad and debt is good... Where you can call yourself a Doctor but be dumber than a keyboard...

Reply to JCon
carlhungis   04-19-2007 at 09:39:20 PM
- 0 +

Quote :

Sorry. I couldn't resist. This is just too good. :lol:

My RECOMMENDATION to AMD on strategy

To quicken the collapse of Intel, AMD should PERMANENTLY lower the price of desktop CPUs.

Except the FX line, all AMD desktop CPUs should be sold at price between a narrow Window of $50 to $150. Since AMD's APM process is so good, the chips they produce are nearly identical, this allows AMD to mark their CPUs at higher rating.

The pricing table should look like the following
1) Athlon 64: $50 to $60
2) Athlon 64 X2 4000+: $65 but with 10% volume-- this makes sure all Pentium Ds will be sold at lower than $60.
3) Athlon 64 X2 5600+ and up : $85 to $95
4) K10 dual core : $120 to $150

With such a pricing scheme, Intel's ASP will collapse. In less than three quarters, Intel will BK.



Such a sound plan. He fails to mention how AMD is supposed to survive selling it's high end kit for $150. :roll: He also fails to realise it's basically impossible for AMD to win a price war against Intel. A significant portion of AMD's CPUs are still 90nm. Intel is 100% 65nm with way more cash in the bank.

http://www.mustangmods.com/data/10900/brilliant.jpg

Brilliant!

Reply to carlhungis
Heyyou27   04-19-2007 at 09:45:09 PM
- 0 +

Quote :

Ive got a better plan:

1)
Only produce the highest clocking processors your manufacturing process can deliver and give them away 4free - 100% MARKET SHARE YA HEARD!

Yeh, thats it.

That's about as realistic as Sharikou's suggestion.

Reply to Heyyou27
angry_ducky   04-19-2007 at 09:51:25 PM
- 0 +

Quote :

Such a sound plan. He fails to mention how AMD is supposed to survive selling it's high end kit for $150.



That's what they're doing right now; an X2 4800+ costs $133 from newegg. Not to mention that it costs them no more to make a 4800+ than it does to make a 3600+; the only difference is the clock speed.

EDIT: I'm talking about the 65nm stuff.

Reply to angry_ducky
goldragon_70   04-19-2007 at 09:57:31 PM
- 0 +

Quote :

"This person" lives in Bizarro World where up is down and down is up... Profit is bad and debt is good...



But isn't that what the businesses/banks want the consumer to believe? 8O

Reply to goldragon_70
JCon   04-19-2007 at 09:59:40 PM
- 0 +

Quote :

"This person" lives in Bizarro World where up is down and down is up... Profit is bad and debt is good...



But isn't that what the businesses/banks want the consumer to believe? 8O

I should revisit that statement... Profit is bad and deficits are good...

(Since not all debt is bad)

Reply to JCon
Synergy6   04-19-2007 at 10:08:50 PM
- 0 +

Quote :

That's what they're doing right now; an X2 4800+ costs $133 from newegg. Not to mention that it costs them no more to make a 4800+ than it does to make a 3600+; the only difference is the clock speed.

EDIT: I'm talking about the 65nm stuff.



Except the 4800+ isn't the high end...

Reply to Synergy6
CompTIA_Rep   04-19-2007 at 10:19:01 PM
- 0 +

It was high end. Technically, nothing is high end, except what is coming out in the next 6mo.

Reply to CompTIA_Rep
Synergy6   04-19-2007 at 10:28:49 PM
- 0 +

Quote :

It was high end. Technically, nothing is high end, except what is coming out in the next 6mo.



True. I post about there here and now.

Reply to Synergy6
MU_Engineer   04-19-2007 at 10:40:06 PM
- 0 +

I am very glad that Sharikou is behind the wheel of AMD because he would ruin it. This tactic would be what Intel would do to bankrupt AMD, not the other way around. This approach demands that you have much more cash than your competitor and that you will end up with some left when they are bled dry in the price war.

AMD doesn't have much cash and should actually raise their prices a little so that an AMD processor of comparable performance to an Intel CPU will cost roughly the same. Right now, AMD CPUs are a better bang-for-buck at stock clocks than Intel CPUs, so lowering prices further would be absolutely asinine.

Reply to MU_Engineer
bfellow   04-19-2007 at 10:45:11 PM
- 0 +

I see a method in his madness. If AMD clears out their entire X2 inventory with el cheapo prices, then they would practically put all their eggs in the Barcelona and R600 baskets.

Reply to bfellow
baldeagle   04-19-2007 at 10:56:23 PM
- 0 +

Sharikou :arrow: cuckoo, cuckoo, cuckoo :tongue:

Reply to baldeagle
MU_Engineer   04-19-2007 at 11:00:46 PM
- 0 +

If I were AMD, I'd quietly switch over from making current-gen parts to K10 and not say much about it. That way, people wouldn't say, "Oh, something much better is coming out in a few months, I'll hold off on buying" and leave a bunch of unsold stuff sitting on the shelves. And by the time that the new stuff ships, everything is pretty much converted over to making the new goods and not too much old stock remains. This appears to be what they are doing and it is the right move IMHO. The big price cuts on current-gen stuff would then happen after the new chips ship.

Reply to MU_Engineer
ElMoIsEviL   04-19-2007 at 11:05:43 PM
- 0 +

I posted a few comments on his blog. Basically trying to educate the so-called PhD professor...lol

Reply to ElMoIsEviL
CompTIA_Rep   04-19-2007 at 11:20:13 PM
- 0 +

You know he is 16 right?

Reply to CompTIA_Rep
jaguarskx   04-19-2007 at 11:25:21 PM
- 0 +

Quote :

My RECOMMENDATION to AMD on strategy

.
.
.

With such a pricing scheme, Intel's ASP will collapse. In less than three quarters, Intel will BK.



I thought Sharitaki-waki (whatever) predicted Intel will be bankrupt by the end of 2006. :lol:

I say AMD should give away their CPUs for free. That way they can capture 100% of the CPU market, thus forcing Intel to shut down production, because Intel cannot compete against that. Meanwhile, AMD can do some creative accounting and cook their books to show a profit.

With some good fake numbers AMD can trick Standard and Poor to increase their credit rating to AAA.

Reply to jaguarskx
NightlySputnik   04-19-2007 at 11:25:33 PM
- 0 +

Quote :



Welcome to the mind of a fanboy. :D



Exactly what I tought. I mean, we all wish for a stronger AMD and more equal competition between the two contender, but we also all know this is real long term goal. Even if AMD gets a cpu that overperform Intel ones by more then 100%, it wouldn't get anymore than 30% market share, unless the whole cpu market goes down. They just can't produce more then that, plain and simple.

So please, somebody send this guy a rocket so he can get back to Earth, it's urgent!!!!! :twisted: :twisted: :twisted:

Reply to NightlySputnik
ElMoIsEviL   04-19-2007 at 11:27:37 PM
- 0 +

Quote :

You know he is 16 right?



He is?

I figured he suffered from a mental retardation. But yeah, being 16 would explain his reactionary stance.

Reply to ElMoIsEviL
Glacier   04-20-2007 at 02:56:53 AM
- 0 +

Quote :

My RECOMMENDATION to AMD on strategy

To quicken the collapse of Intel, AMD should PERMANENTLY lower the price of desktop CPUs.

Except the FX line, all AMD desktop CPUs should be sold at price between a narrow Window of $50 to $150. Since AMD's APM process is so good, the chips they produce are nearly identical, this allows AMD to mark their CPUs at higher rating.

The pricing table should look like the following
1) Athlon 64: $50 to $60
2) Athlon 64 X2 4000+: $65 but with 10% volume-- this makes sure all Pentium Ds will be sold at lower than $60.
3) Athlon 64 X2 5600+ and up : $85 to $95
4) K10 dual core : $120 to $150

With such a pricing scheme, Intel's ASP will collapse. In less than three quarters, Intel will BK.



Hahaha, I hope Sharikou's "suggestion" was actually a really bad joke. AMD would be flushed down the toilet in no time, if they actually tried that strategy. Then again, I guess a 16 year-old can be forgiven for such ideas.

Reply to Glacier
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