Langlois - Re: "Even if Intel sells faster P2 chips in 3Q 98, how could they have an ASP of 400$ while selling the whole computer for less than $1000?
It has been reported that Intel will drop the Pentium II/233 MHz to
$294 by early next year:
techweb.com
"By February 1998, Intel is expected to further drop the price of the Pentium II 233MHz to roughly $294, while the Pentium 233MHz with MMX technology will see a modest price drop to $294, as well, industry sources said."
That is a $106 drop. Let's assume it will drop another $75 by the end of the year - resulting in a $219 price.
Currently, the low cost Pentium II motherbaords are $195, and let's assume they will drop to $135 by the end of next year - recall that the Pentium II/SEC contains the cache SRAM.
A CPU/motherboard then costs $354. Add in a 3 Gig hard drive ($190), 32 Meg DRAM ($110), a graphics card ($100)and you have $750. Throw in a case/power supply and keyboard plus 15% profit, and I think <$1000 will be met quite easily. Remember - the memory and disk drives will also become cheaper.
Now, with $219 the lowest price, the highest price and fastest Pentium would sell for $619 for a "symmetric price with an average of $400. However, the volumes will be much greater for the slower CPUs. Thus, Intel will probably have 450 MHz Deschutes devices selling for $750 to help keep the ASPs centered at or near $400.
Paul |
