Re: Consumers will likely be able to buy PCs containing 1-GHz chips later this month...
This is an interesting move on the part of Intel. Currently, AMD has been making rapid and substantial progress in the "retail" market, but is just beginning to enter the "business" market. The retail market, especially at the high end, is much smaller, but still can generate significant profits (especially for AMD). By directing what volume they've been able to produce to the market where AMD is making money, Intel hopes to "cut off their oxygen" in Stever Ballmer's famous words. It's doubtful that such an effect will be meaningful, since it will be present for, at best 2 months or so.
It's clear that the intent is to deny AMD revenue, rather than raise Intel revenue, since the business market is less price sensitive than the retail market. In other words, Intel could get more money for 1GHZ business CPUs than 1GHZ retail CPUs, but they've chosen to take the retail route.
I think it's something of a Hail Mary move on the part of Intel, though. A move like this, when neither company has much volume ready at such speeds (and if Intel did have volume ready, they'd be targeting the business market) will tend to "freeze" the market. In other words, it becomes tough for a purchasing agent to justify paying much money for 800 MHZ, when 1GHZ systems are already available (just not in the configuration he requires). This move stands a good chance of delaying a significant number of high end business purchasing decisions that would otherwise have been automatic "put in an order for whatever is the fastest business IBM, Compaq, Dell, Gateway, etc." purchases.
Two to three months from now, when the "freeze" is over, high end business Athlons will be available, and now, thanks to Intel's recent move, they will enter the market concurrent with a burst in deferred demand for such systems that should make the market more receptive to these new systems than it might otherwise have been. This should guarantee a successful launch of the Athlon business lines being developed by IBM, Compaq, Gateway, etc.
To the guys at Intel that picked Rambus over DDR, gave the 820/840 an "OK to ship", didn't provide for PC133 on any chipset for the last 6 months, made external video unavailable on the 810, and now this latest move,
Thanks, again!
<VBG>
Dan |
