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Politics : Formerly About Advanced Micro Devices

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To: Scumbria who wrote (87657)	1/17/2000 1:47:00 PM
From: Pravin Kamdar	Read Replies (1) of 1573425

Scumbria, Intel's ASP in the low-end market are low (due to K6-2), Intel has just cut their ASP in the laptop market in half due to incredible market share gains by the K6-2 in that market. AMD is making a big Athlon price drop in order to increase demand to the 3-5 million unit per quarter range. Intel will respond with major desktop PIII price cuts very soon -- cutting ASP on their bread-and-butter processor. Intel will try to extort $3000 a piece for their new large on-chip L2 cache Xeons in the next couple of months, but once Mustang comes out, Intel will have to make huge cuts in that line, as well. I think that Elmer is correct to say that Intel is reacting to AMD's cuts, but he is incorrect in saying that AMD is waging a price war. AMD is pricing their chips at much lower prices than they would like, but at prices that allow them to be sold. Intel will never adopt a policy of peaceful coexistence with AMD. Too bad for them, as AMD is used to surviving on low ASPs, while Intel and their investors are not. Pravin.

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