How does that work? I doesn't work directly but in a declining server market who knows... Maybe some big server company says hey, OK Intel, you want to sc$w us on these prices we are going to add some Palimonos to the line just as leverage.
Wait until you see Anands Palomino 760 MP review. The little 'ole dual 1.2 Gig Palomino setup beats the 1.7 GHZ P4 XEON in nearly ALL the benchmarks...
RE:"Company A has products YY and ZZ. Company B has product YY, but not ZZ. So, customers can use lower prices for company B's YY as a wedge to get lower price from company A for ZZ? Does it work that way? Also, company B doesn't have product TT, which is Tualatin, which is required for Blade servers. Company B therefore has only one third of the cards to play. I think company B is still screwed (pardon my Italian).
...Company B has been screwed...with a Notbook chip and 2 way server chip, they are a litlle less "scr$wed".
You see...company A has DD, WW, NN, SS and JJ. Company B had only DD. Company B was shafted because even if company A cut prices on DD, they could still make a lot of money on WW, NN, SS and JJ... Then Company B got some WWs, NNs, SSs to go along with the DDs... Now, company A will have that much less $ volume to get fat margins should they choose to maintain market share.
Jim |