AMD and Intel ASP growth
ASP stands for average selling price. This is the price of a particular product across different markets. ASP is generally used in the retail and technology industries. It is computed as follows:
|ASP = Total revenue earned from unit sales ÷ Units sold within the same period|
Importance of tracking ASP growth: ASP acts as a benchmark price as it is used by marketers to position the product as a mass or an exclusive one. Any change in ASP affects revenue, profits and ultimately the stock prices of a company.
AMD and Intel ASP growth as a metric: A rising average selling price would be a positive performance indicator.
Industry performance: The computer and graphics division of AMD faced a 66% growth in ASP from Q4 FY 2017 to Q1 FY 2018. This was the company’s highest quarterly growth since the first quarter of 2016. In Q3 FY 2018, the ASP declined by 10% from Q2.
The average selling price of the desktop client computing group of Intel increased at a decreasing rate from Q2 FY 2018 to Q3 FY 2019. In Q4 FY 2017, there was a negative 2% growth from Q3. This was the sole quarterly decline for this segment since 2016.
The notebook client computing division of Intel faced a double digit ASP growth QoQ of 11% and of 10% in the second and third quarter of 2018, respectively. In Q2 FY 2019, there was a QoQ growth of 2%, followed by a 9% growth in Q3.
Intel’s platform data center group had a 13% jump in ASP from Q4 FY 2018 to Q1 FY 2019, compared to a mere 1% growth from Q4 FY 2017 to Q1 FY 2018.
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