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Politics : Formerly About Advanced Micro Devices

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To: Joe NYC who wrote (113798)6/1/2000 10:05:00 PM
From: Bill Jackson  Read Replies (2) of 1573789
 
Jozef, Re: Downmarking AThlons.
It is quite possible that AMD does indeed mark fast parts as slower parts and fill that sales niche. What would you have them do? refuse the sale? Deliberately make slow parts by tweaking the process?
This has been going on for years in assorted chip businesses and simply reflects the fact that a process might produce a good yield of faster parts than the market needs. Besides it is a lot easier do downmark parts than to upmark them. As it stands AMD can simply sell whatever they can at the higher speeds by price adjustments on a maximization basis and the fill all the orders from the top on down, first with true slower parts and gradually use faster and faster parts. Since all the parts have the same cost trying to sell them all at the high end is best, but the damn things keep flooding off the line at amazingly fast speeds and high yields so they have to move them somehow.....why not downmark them? I say downmark and not downbin as the parts are full speed, just marked slower.
That is why overclocking AMD parts is such a good game.

Bill
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