Formerly About Advanced Micro Devices Message Board

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Politics : Formerly About Advanced Micro Devices

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To: Paul Engel who wrote (64184)	7/6/1999 3:18:00 AM
From: Amy J	Read Replies (2) of 1583682

RE: "But that is two more years of brutal pricing in the low end." Hi Paul, Maybe, maybe not. On the low-end side, the processor does not quite stand out as expensive as it does on the high-end relative to the other components. Other components don't quite scale down in pricing like the CPU. There's a cost in supporting alternative vendors, and while second sourcing is normally done, some of the larger low-end players are only using one low-end CPU source. It depends on volume vs. cost of supporting alternative source, and other factors like reliability of distribution, roadmaps, etc. Plus, the pricing schedule is better when there's only one source. So, cost wise, for the low-end, one source can be better financially. Aren't some high volume players going single source - didn't eMachines just do this? I thought HP's P-PC products (hand-helds) are using single source. Best, Amy J

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