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Politics : Formerly About Advanced Micro Devices
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To: Tenchusatsu who wrote (147749)6/19/2002 4:40:21 PM
From: TimF  Read Replies (1) of 1580483
 
Tim, how much does performance really sell on the desktop these days?

Not as much as it used to but it still helps. Maybe in the past you might get $60 for a low end chip and $600 for a high end chip. Something like 10 to 1. Now you might get $30 for the low end chip and $120 for the high end. 4 to 1. The advantage from the extra speed is much lower but its still there.

AMD's resources are limited true, but dropping desktops would hurt them a lot more then it would help. For one thing its where most of their revenue comes from. Also if AMD concentrates on just one area Intel can lower prices in that one area while making it up elsewhere. This was esp. true when AMD concentrated on low end desktops. It will be less of a factor on servers (if AMD gets a large enough server presence) because Intel does not want to destroy their server margins but it still would be very risky for AMD to just concentrate on servers.

Tim
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