Nice to see they make a good profit. But I wonder how hard the extreme low prices on Conroe and Woodcrest will hit AMD.

Basicly alot of their products will need slashing down to something between 1/4th and 1/2 their current prices to be competitive in the price/performance.

With a highend performing CPU at 300$, everyone can enjoy the action for once.

good on AMD for doing well
but what i found weird was:

"...gross margin rose from 52.7% to 58.5%..."

and

"...increased our average selling price (ASP)..."

having an increase in gross margin is fine as it probably means a better sales to overhead ratio. but an increase in average selling price sounded a little weird as i sounds like they just hiked up the prices for profit rather than passing it on to the consumer.

in any case this should be good for AMD. just hope the whole google thing pans out coz that'd be a pretty google partnership for them.

Am just waiting when a X2 4400+ (or a better one) retails for $300 to pop in my Ultra-D.....thanx to Conroe!!!

At those price points, AMD will generate enough profit.......till K8L.

Things aren't quite so bleak on the server side, where AMD has been making the most marketshare progress. They still have their big OEM accounts (HP, Sun), and the Opteron in multi-socket configurations should compete quite well against Woodcrest, particularly when cost is a factor -- the Blackford chipset gives Intel dual FSBs but it's two-socket only; there should be a four(!) FSB chipset in 2007 but that's going to be a very expensive chipset compared to a glueless 4-way Opteron setup. One other positive on the server side is that AMD's Pacifica virtualization technology is a far better design than Intel's initial stab at VT, and hardware virtualization is going to be a big deal for a lot of server customers going forward. I have no doubt Intel will catch up but they're a step behind with what is going into the first round of NGMA chips.

On the other hand, I fear AMD is getting no traction in the mobile segment where even a dual-core Turion is going to be no match for Merom atop "Centrino" platform sales. They might be better off targeting the Turion at Sossaman-style blades. Of course they'd need an OEM like HP to step up and do that for them.

Even if Conroe does succeed, it will take a while for that success to bake in, in the general market that is.

I doubt you will see on cpus a 180-reversal that's often seen on graphic cards.

That being said, I hope Conroe/Merom delivers, if only to raise the standard. Of course, I also hope that AMD has something up its sleeves to counter that. That's what competition is all about.

Imagine that. AMD sells CPU's that cost more than $150 and they're turning good profits quarter after quarter...in the beginning, Socket A saved AMD, but at the end Socket A almost killed it. Now that they've had a couple quarters away from it, they're continuing to be healthy.

HOORAY!

AMD need this now to fund the research for the new KL8 architecture.

You can be sure that sales will slump in the future, especially for the period between Conroe launch and KL8 launch.

The small growth vs. 4Q05 can probably be attributed to the fact that the 4th quarter is typically quite strong for PC hardware suppliers.

Conroe will surely take some of the wind out of their sails... but I'm optimistic that they've got enough momentum now that they can ride it out without slipping back into unprofitability. They'll likely have to cut prices (at least on their consumer lines) until K8L debuts... and while this isn't so good for AMD's bottom line, it is good news for us enthusiasts. :D

Uh... WOW. Props, AMD.