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Technology Stocks : AMD:News, Press Releases and Information Only!

AMD 203.76

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Nov 21 9:30 AM EST

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To: James Yu who wrote (2142)	11/14/1997 8:26:00 PM
From: Paul Engel	Read Replies (3) of 6843

James - Re: "Why the users don't buy competitors' low price below $90 CPUs?" For a variety of reasons. First, large OEMs (Compaq, Dell, HP, Gateway) require a guranteed source of CPUs. In the past, many of them have had their business interrupted by AMD (Compaq in particular) which has failed to deliver the right CPU in the right volume. They have found out that saving $30 or $40 per CPU can ALSO put them put of business. Second, Intel has so associated itself with the microprocessor (they did invent it) that many buyers associate CPUs with Intel. Their name alone connotes good quality and perfromance - even in the face of the three bugs that have cropped up in the past three years. I guess it's why many women love Calvin Klein jeans, even though they can get much cheaper ones at K-Mart. They'd be embarrassed to wear the K-Mart jeans in public! Paul

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