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Technology Stocks : All About Sun Microsystems

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To: QwikSand who wrote (40494)1/17/2001 5:38:11 PM
From: Steve Lee  Read Replies (2) of 64865
 
Qwik,

It is more likely that the choice to go Intel in Cobalt was more of a considered business decision, than some kind of conspiracy.

Sun would have liked to use AMD but are more interested in the success of their products than in being Intel's enemy. They can't use AMD cos they want a supplier who:

1) Has a history of being able to keep multiple fabs running
2) Is financially strong enough to ride thru downturns
3) Doesn't constantly axe products that customers previously thought they would have a supply of

etc etc etc

And don't confuse price and cost. Intel's ASP's are higher but they are the low cost producer. Had Cobalt chosen a current Athlon, it probably won't be in production a year from now. Intel will be able to offer P3's at incredibly low cost for the foreseeable future, whilst continually lowering power and heat dissipation requirements and shrinking the die size. This is what they always do with their low end products, continuing to sell into this kind of market, long after the boxed versions are obsolete and unavailable. With AMD products, who knows what they will be making in 6 mths time.

And don't forget Intel own their own fabs. The AMD fabs are owned by the money lenders, and they might want them back sometime.

Edit, and as if by magic, a few mins after writing the above, this hits the newswires:

"Indeed, by the end of the current quarter, all AMD Athlon processors will be manufactured with clock speeds of one gigahertz or higher," Sanders continued.
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