jim,
My concern in this transition is not just to P2, but to all MMX chips. Following is from Solomon's take on the conference:
"2) Intel management stated at the analyst meeting that at the end of the second quarter, non-MMX Pentium and Pentium Pro processors will still account for approximately 66% of Intel's production. As demand is strongest for MMX-enabled Pentium and Pentium II processors, we imagine that Intel will have to use price concessions in order to stimulate demand for its non-MMX processors."
Current demand is clearly for MMX, well beyond the 34% production capability. I'm not as concerned about the price concessions, I am more concerned that, especially in Europe where Intel's brand equity isn't as powerfull, OEM's will be willing to use competitive MMX chips. Once you lose a customer, getting them back is difficult, both manufacturer's and end users.
Intel said at the meeting that 90% of units will be MMX in the 4th quarter. By that time, the pent up demand should guarantee a blow out quarter. The question is will the street look that far ahead, or punish Intel for 2nd & 3rd quarters.
John |
