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Politics : Formerly About Advanced Micro Devices
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To: Charles R who wrote (96825)3/4/2000 9:15:00 PM
From: SteveC  Read Replies (2) of 1572096
 
"My advice to anyone who asks me for an opinion on that topic is to buy the lowest MHz
processor and buy 19 inch monitor, extra memory, and DVD player. And I think mainstream PC
magazines are also starting to say things on these lines."

I'm sympathetic to your argument, but I don't think many consumers will buy the lowest MHz chip. Most people would like their computer to last at least four years. With so many people getting into photo manipulation programs in addition to amazing 3D games, if you go for the lowest speed chip you asking to buy a computer that may be outdated far sooner than four years (again, I believe this is the popular view). Don't think for a minute anyone under 35 is going to buy the slowest computer on the market.

This goes back to my Honda argument. Honda succeeded for years because consumers generally want a car with value that fits right in the mid to upper middle range in the market.

So it plays to AMDs advantage to move the processor speeds to higher range as long as Intel's ramp is 100 MHz or more slower. Consumers will look at the more expensive Intel systems and compromise by choosing an Athlon. Look at the Gateway homepage. It shows the exact same computer with a 550 MHz PIII and an Athlon 650, both selling for the same price. The logical choice is to go for the Athlon (Intel made a big mistake not continuing to aggressively promote the "Intel inside" campaign). AMD is completely screwing up Intel's price structure and Intel can't retaliate on the high end.
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