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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 217.59+1.1%Dec 3 3:59 PM EST
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To: Scumbria who wrote (19952)11/20/2000 11:22:20 PM
From: Joe NYCRead Replies (3) of 275872
 
Scumbria,

It appears that Athlon will be forced into a PR rating scheme.

I don't think it will fly. AMD just needs to stay reasonably close in the clock speed so that the reviewers claim that Athlon is faster. Slowly, this "Athlon is faster" will sink in.

Now with such a huge range of clock speeds - 600 MHz to 1.5 GHz, you don't necessarily need the fastest one. Few people buy the fastest one. But if the salespeople say that Athlon is faster than P4, people will not hesitate to buy Athlon in the middle of the range.

Actually, majority of people tend to go for the middle of the available range, which is where AMD is the strongest.

Next to a 1.5 GHz P4 for $3,500 a P3 running at 866 Mhz looks like a piece of crap, but a 1.1 GHz Athlon looks like a safe choice.

The PR scheme would ultimately defeat Athlon, the way it defeated Cyrix when Cyrix was a contender. Suppose 1.2 GHz Athlon is rated PR 1.5 GHz. There will be at least 1 benchmark where Athlon will get slaughtered (Quake) and people will just say Athlon is slower, and there will be a lot of mistrust to Athlon.

I believe Athlon will withstand being behind in MHz easily in 2001, and may regain the MHz crown with ClawHammer. So the potential PR damage caused by the PR ratings is not worth it.

Joe
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