Jim,
A blurb on AMD price cuts from The Register - reasons behind the AMD price cuts mentioned in this article, seem like they were taken right from some of the good analyses posted here by Dan, Chuck, Cirruslvr, etc.
theregister.co.uk _________________________________________
Posted 21/02/2000 3:55pm by Mike Magee
Athlon pricing
As we revealed earlier on today, AMD has decided to take its price war right to the gates of Chipzilla central and has further revised its pricing on the Athlon in a bid to make Intel hurt.
Our information is that AMD has decided to make the Athlon 700 its sweet spot -- cutting the price by a staggering 60 per cent next week.
Here is the latest distributor pricing, which will hit on the 28th of February next. OEM prices, for quantities of 1000, will be even less expensive.
The Athlon 550 is now terminated. The 600MHz will cost $190, the 650MHz $226, the 700MHz $270, the 750MHz $350, the 800MHz $530 and the top of the range model, the 850MHz Athlon, will cost $750 from next Monday.
Our sources say that AMD is making these moves to help counter Intel's plans to position its Celeron against the Athlon and the K6-2.
While the reductions have the effect of reducing AMD's average selling prices, and so its profits on Athlons, the cuts also demonstrate that the company is determined to take advantage of shortages in supply of Intel's Coppermine processors.
Intel has described its shortages as temporary, and lasting only until the end of Q1, but there has been tightness since the first .18 micron Coppermine products were launched on October 25th last, as exclusively reported here at the time. In January, we reported that Intel's distribution channel's allocation had been subjected to massive shortages.
The UK cuts, obtained from sources close to our local distributor and OEM channels, have also been echoed by similar information on German site Tech Channel, which also gives percentage cuts for the other AMD parts. ©
theregister.co.uk _________________________________________
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