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Politics : Formerly About Advanced Micro Devices
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To: kapkan4u who wrote (72066)9/17/1999 1:17:00 AM
From: Charles R  Read Replies (1) of 1586356
 
Kap,

<<Paul - re: $80 - $90 ATHLONS !!!!>
This is the biggest bunch of BS I have seen from Paul>

What do you think he OEM price for 500MHz Athlon should be and why?

Could you consider the following things when you answer the question:
- 500 would be the 5th speed grade from the top (700/650/600/550) that AMD is shipping
- There is a premium that OEMs have to pay for Athlon motherboard
- There is only a small amount of stuff on the 500MHz speed grade. i.e., once the limited clearance inventory runs out the OEM would have to stop selling the SKU.
- Assume K6 family will ship at 533/133MHz or 550/100MHz in a few weeks

Chuck

P.S.: The time to sell 500MHz Athlons was a couple of months back. Now that window is closing fast. Once K6 or Celeron starts shipping at over 500MHz speed grades, the ASPs will plummet further.

P.P.S.: I do think that the sub-$100 ASP on 550MHz is BS - unless, they are trying to get rid of some buggy old rev that needs additional patches that tier-1 OEMs do not like to make (giving rock bottom ASPs to clear that kind of stuff is a common practice in the semiconductor biz).
P.P.P.S.: I also do not believe that AMD would be losing money at that ASP. Will not be making much of a profit but will cover the marginal costs.
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