AMD cuts Phenom II prices

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Originally Posted by AbelJemka

You''re still writing stupid things :clap:

You really think mainstream market is "near nil margin"?
For five Rockfeller guys like you buying extreme edition cpu, there is 40 guys "low level" mainstream cpu. I know from where Intel and AMD will get the most money :rolleyes:

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Judging from your response you're "in the know" somehow... So my question, do you have any idea what their profit margin might be?

Anand already thought they were hurting(margins) before the price cuts.

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This is the downside to AMD's pricing strategy; while it's great for consumers it's not particularly great for AMD's profit margins.

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Don't get me wrong, I like AMD's pricing(considering building a PII rig)... That does not dismiss his "profit margin" point, which IMHO is probably razor thin.

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Originally Posted by T_Flight

Bud, I don't cry about anything. I'm not like you kids on here. I understand *why* things are the way they are. Wanna know why? Becasue of failing companies just like this one causing people like me that pay taxes to have to buy their sorry tails out of it. I don't feel a bit sorry for them, and we shouldn't be doing it.

FYI, I got where I'm at today becasue I worked my ass off for it. I didn't go looking for free rides and handouts. I used my head for something other than a hat rack and realized that a day like this would come when I needed to put food on the table.

If you really casred about AMD you wouldn't just be looking for the cheapest thing out there and begging them for chips at prices they can't afford to sell them for. That's precisely what has ran them into the ground. It's AMD's biggest fanboi's that are killing it quickly.

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AMD OPTERON(QUAD-CORE) MODEL 8384
$2,204.07

AMD OS2384WAL4DGI - OPTERON(QUAD-CORE) MODEL 2384
$1,050.97


desktop prices don't reflect all profits.

I was with T Flight up until "I'm not like you kids on here."

Now if that's not the most presumptuous and pompous thing I've ever heard...

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Originally Posted by T_Flight

It's real simple why they cut the prices. They just don't understand that they have to make a profit. It's what has got them in the dire situation they are now in. They keep making the same mistakes over and over again, and expect different results.

Until they get a top level performing chip that will compete with their competition's finest and sell them at prices that will make them money they are never gonna be able to get out the pit they've created.

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Maybe you should let them know what they are doing wrong when you attend thier board meeting on tuesday. :yawn2:

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Originally Posted by T_Flight

Bud, I don't cry about anything. I'm not like you kids on here. I understand *why* things are the way they are. Wanna know why? Becasue of failing companies just like this one causing people like me that pay taxes to have to buy their sorry tails out of it. I don't feel a bit sorry for them, and we shouldn't be doing it.

FYI, I got where I'm at today becasue I worked my ass off for it. I didn't go looking for free rides and handouts. I used my head for something other than a hat rack and realized that a day like this would come when I needed to put food on the table.

If you really casred about AMD you wouldn't just be looking for the cheapest thing out there and begging them for chips at prices they can't afford to sell them for. That's precisely what has ran them into the ground. It's AMD's biggest fanboi's that are killing it quickly.

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Hey forgot to tell you genius, it's "ad nauseam" and we got there due to all your anti AMD rants. You just can't keep them to yourself even if no one is interested in them. Sounds like some old fool growling in his beard :rofl::ROTF:

This is what I was waiting for .... quad price war! Whoohoooo

EDIT: Why wait.... whoohoooo

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Originally Posted by T_Flight

Becasue of failing companies just like this one causing people like me that pay taxes to have to buy their sorry tails out of it.

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Lol! You pay taxes for AMD? Explain this to me, I don't understand how? :confused:

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Originally Posted by AbelJemka

Lol! You pay taxes for AMD? Explain this to me, I don't understand how? :confused:

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I will explain ...

He is not complaining about paying taxes for AMD, he is complaining about corporate welfare in general. The world has evolved into an abhorrence of the idea of 'failure', to the point that governments around the world will spend money like a drunken sailer providing a safety net for businesses that have proven to be non-viable with failed business models. As a taxpayer he is tired of governments throwing millions of dollars to support companies that cannot turn a profit.

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Originally Posted by AbelJemka

Lol! You pay taxes for AMD? Explain this to me, I don't understand how? :confused:

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He is speaking of the govornment bailouts hapening here in the U.S. with our tax money.

He has a habit of talking about things he knows nothing about like he is a expert. He has no idea of AMD's profit margins and yet he preaches about it :rolleyes:

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Originally Posted by JumpingJack

I will explain ...

He is not complaining about paying taxes for AMD, he is complaining about corporate welfare in general. The world has evolved into an abhorrence of the idea of 'failure', to the point that governments around the world will spend money like a drunken sailer providing a safety net for businesses that have proven to be non-viable with failed business models. As a taxpayer he is tired of governments throwing millions of dollars to support companies that cannot turn a profit.

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then he should probably be complaining about his elected officials, who have a responsibility to the people versus a company who has a responsibility to turn a profit for shareholders by any means they can within the "law" ^^

Edit: Also!! yay for quad wars! :D

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Originally Posted by villa1n

then he should probably be complaining about his elected officials, who have a responsibility to the people versus a company who has a responsibility to turn a profit for shareholders by any means they can within the "law" ^^

Edit: Also!! yay for quad wars! :D

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Exactly! If I want a company to succeed, I will buy their product. But hand out free money they did not earn--- darn striaght --- do I blame them for asking and taking? Nope, I blame the politician who pulls trigger and hands it out.

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Originally Posted by JumpingJack

Exactly! If I want a company to succeed, I will buy their product. But hand out free money they did not earn--- darn striaght --- do I blame them for asking and taking? Nope, I blame the politician who pulls trigger and hands it out.

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But why blame AMD? Only the German Tax payers have paid them anything. I've heard nothing about AMD getting any money from the US Government, zero. We do know that they got seed money from New York state but those are state taxes. Since then folks from the UAE have stepped in. The rest of AMD prop-up money came from banks and large lenders.

Bad for AMD, good for us but I expect them to fall even more. I don't believe AMD is making any profit Right now. This due more to the economy than Intel. But that's just the opinion of someone who according to "LowRun" who can't read:rolleyes:

OT

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Originally Posted by T_Flight

It's real simple why they cut the prices. They just don't understand that they have to make a profit. It's what has got them in the dire situation they are now in. They keep making the same mistakes over and over again, and expect different results. They are still trying to compete at a low level with near nil profit margins and expect to survive and it's not working...it never has. You'd think that over the entire period of time since X2 they would've realized that.

Until they get a top level performing chip that will compete with their competition's finest and sell them at prices that will make them money they are never gonna be able to get out the pit they've created.

I keep saying it ad nauseum...
Companies are supposed to be in buisness to make money. That is the ONLY reason they are in buisness. When they don't they cease to exist.

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Pardon the question, but are you really THAT thick ? I mean, if AMD has a competitive products against Intel top flight chips at the moment, that they can charge more accordingly, don't you think they would have done so ? :confused:

They charge as much as what the market would accept, that's the bottomline. Yes, they're in a hole and making mistakes, but that doesn't mean they have to lie down and surrender, LOL. :rofl:

What are you suggesting in THE SHORT RUN, charge 400 US$ for a Phenom II 940 simply for maximizing profit per unit count ? You can always play "coulda, shoulda, woulda" game, but AMD has to fight with what they have at hand right now. :yepp:

The future will take care itself, for the better or worse, we don't really know, though i must say this failing situation isn't exactly a new territory for them -those AMD K6 days, bleh. Put down your AMD bashing stick, it's getting lame by the minute. :down:

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Originally Posted by G0ldBr1ck

He is speaking of the govornment bailouts hapening here in the U.S. with our tax money.

He has a habit of talking about things he knows nothing about like he is a expert. He has no idea of AMD's profit margins and yet he preaches about it :rolleyes:

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Hey, I didn't pretend to know what the exact numbers were. I just know the end result...

They ain't enough to get them out of the red so they obviously ain't high enough are they?

Good try at taking the focus off the problem though. :yepp:

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Originally Posted by T_Flight

Bud, I don't cry about anything. I'm not like you kids on here. I understand *why* things are the way they are. Wanna know why? Becasue of failing companies just like this one causing people like me that pay taxes to have to buy their sorry tails out of it. I don't feel a bit sorry for them, and we shouldn't be doing it.

FYI, I got where I'm at today becasue I worked my ass off for it. I didn't go looking for free rides and handouts. I used my head for something other than a hat rack and realized that a day like this would come when I needed to put food on the table.

If you really casred about AMD you wouldn't just be looking for the cheapest thing out there and begging them for chips at prices they can't afford to sell them for. That's precisely what has ran them into the ground. It's AMD's biggest fanboi's that are killing it quickly.

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i dont know what to say

http://www.robbyslaughter.com/images/head_in_hands.jpg

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Originally Posted by soundood

i dont know what to say

http://www.robbyslaughter.com/images/head_in_hands.jpg

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Don't say anything, the rants of this guy are hazardous. They can seriously damage your brain :eek:

A huge portion of AMD's bleeding is from the ATI acquisition for which was over valued at the time of purchase and lost allot on intel chipset sales which further cut ATI's earning potential. If AMD had not bought ATI they would not have the millions in loan payments to make and would have been a much leaner company.

The bread and butter of cpu sales is not the $300+ cost cpus, I would say generally most people go for a pre built computer with a cpu thats a little more expensive than the cheapest.

You don't need a high end product to sell to the masses, you need a good affordable product, nobody needs say i7 for web browsing or office suites.

You DO need a high end product to sell to the enthusiast that is more demanding and more apt to use the extra power.

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Originally Posted by STaRGaZeR

Don't say anything, the rants of this guy are hazardous. They can seriously damage your brain :eek:

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:rofl::ROTF::ROTF:

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Originally Posted by STaRGaZeR

Don't say anything, the rants of this guy are hazardous. They can seriously damage your brain :eek:

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:ROTF:

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Originally Posted by highoctane

A huge portion of AMD's bleeding is from the ATI acquisition for which was over valued at the time of purchase and lost allot on intel chipset sales which further cut ATI's earning potential. If AMD had not bought ATI they would not have the millions in loan payments to make and would have been a much leaner company.

The bread and butter of cpu sales is not the $300+ cost cpus, I would say generally most people go for a pre built computer with a cpu thats a little more expensive than the cheapest.

You don't need a high end product to sell to the masses, you need a good affordable product, nobody needs say i7 for web browsing or office suites.

You DO need a high end product to sell to the enthusiast that is more demanding and more apt to use the extra power.

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Man so many people miss that point about ATI on even Intel chipset motherboards. ATI wasn't selling enough Intel based boards to even count. Once ATI lost rage built in there wasn't much left them. I remember a lot of us here waiting for ATI's effort (motherboard).

Anyway, prices cut and will be cut some more.

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Originally Posted by AbelJemka

You''re still writing stupid things :clap:
No everyone like can buy a 1000$ CPU!
For you 200$-250$ is low level. And you're the guy crying about economy crysis!
You really think mainstream market is "near nil margin"?
For five Rockfeller guys like you buying extreme edition cpu, there is 40 guys "low level" mainstream cpu. I know from where Intel and AMD will get the most money :rolleyes:



PhII 940 was priced to be between Q9550 and Q9400 based on it perfomance same for PhII 920, between Q9400 and Q9300.
And now after Intel pricecut? They are still at the same place!
A place where they will sell well.

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I don't think you got the point.

The point is AMD does not make an incredible amount of profit when they sell their top end chip for 225 dollars because the cost of the chip itself and R and D. They also have to lower the price of their other chips because it starts to compete with the rest of their line because of the similar pricing.

It also doesn't help that these chips are not made by them, but by a third party. This 50 dollar price drop has removed a huge portion of the profit margin on this chip that probably had lower margins than the competition in the first place. What the point of selling a million chips if you are making pennies on each one. Margins are not the same thing as volume, which I think is the thing your thinking of.

AMD needs new technology so that they can bring the price of their average chip up, so they can create larger margins and make more profit. AMD was at its most profitable when their average chip price was high, which also coincides when their chip were at their most competitive. Everyone knows this. AMD was losing the most money when its average price was at its lowest because of the paper thin margins on each chip sold.

Although the economy is bad, if you make a fast enough chip, people will still buy. Especially if you have affordable MB and ram to accommodate it.

This is the scenario NV is in at the moment they have an expensive chip but they have to sell it for very low margin because the competition is strong and they cannot let AMD gain marketshare.

However the situation AMD is in, they cannot afford this approach because they do not have piles of extra cash nor do they have a tremendous marketshare to lose which is why this approach is used in the first place.

Cheap chip for all benefits everyone but the company.

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Originally Posted by T_Flight

.........................It's AMD's biggest fanboi's that are killing it quickly.

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You have said this many times and im very curius how you can actualy think that AMD fans are hurting the company. AMD fans make no decisions for AMD, AMD fans do buy the products that AMD are in busness to sell, AMD fans tend to invest in AMD.

The first few times you have said this I figured you were just rambling but you keep saying it. Evidently you believe this and are trying to make a point that most of us do not see so if you would inlighten us........



As far as price cut, It was enough to get me to order a 920 today when I already have a 940.

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Originally Posted by tajoh111

I don't think you got the point.

The point is AMD does not make an incredible amount of profit when they sell their top end chip for 225 dollars because the cost of the chip itself and R and D. It also doesn't help that these chips are not made by them, but by a third party. This 50 dollar price drop has removed a huge portion of the profit margin on this chip that probably had lower margins than the competition in the first place. What the point of selling a million chips if you are making pennies on each one.

AMD needs new technology so that they can bring the price of their average chip up, so they can create larger margins and make more profit. AMD was at its most profitable when their average chip price was high. Everyone knows this. AMD was losing the most money when its average price was at its lowest because of the paper thin margins on each chip sold.

Although the economy is bad, if you make a fast enough chip, people will still buy. Especially if you have affordable MB and ram to accommodate it.

This is the scenario NV is in at the moment they have an expensive chip but they have to sell it for very low margin because the competition is strong and they cannot let AMD gain marketshare.

However the situation AMD is in, they cannot afford this approach because they do not have piles of extra cash nor do they have a tremendous marketshare to lose which is why this approach is used in the first place.

Cheap chip for all benefits everyone but the company.

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I don't understand you guys....you want AMD to price their parts higher against products that outperform? Do you understand VOLUME? Volume parts are not priced at $500+, AMD is priced to fit in the mainstream, where they will sell more chips. Intel selling a $1k processor is just catoring to the die-hard enthusiast who can afford it. How many of those are there vs the average joe who buys a laptop, or a cheap desktop?

None of you can begin to make estimates about the margins on their new tech, nor can you know the yields of the new process.

PH II 920 and 940 are having much more sucess then PH I. AMD was erased from Retail market and is now coming again with this new CPU.
And only came out 2 models.
Wait for February with 6 AM3 models and it will be much better the it was with PH I. Many people (90%++) is waiting for AM3 models.

And Intel new quad-core and price cuts where very very agressive response because they know that this PH II is going to give them harder times then with PH I.