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Politics : Formerly About Advanced Micro Devices
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To: Dan3 who wrote (71066)9/5/1999 2:51:00 AM
From: dumbmoney  Read Replies (1) of 1575386
 
The slope of the demand curve for CPUs is quite steep. If AMD marketed only 600 and 650 Athlons and were producing equal quantities of each, then in order to get sell through at the highest speed grade they would have to reduce that price to whatever the 50th percentile customer was willing to pay.

Athlon isn't 100% (or anywhere close) of the x86 CPU market, though, so this logic doesn't apply. Further, "sandbagging" in this sense doesn't mean you don't ship the fastest chip you can; it just means you sell some fast chips as slower chips.

To get back to reality, I don't see any demand for "slow" (i.e. a couple speed grades behind Intel's fastest) Athlons. Higher MB costs make the "slow" Athlon unattractive even at a silly low price. Clearly, AMD is not "sandbagging" anything.
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