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Politics : Formerly About Advanced Micro Devices
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To: Brian Hutcheson who wrote (26703)12/13/1997 1:14:00 AM
From: Kashish King  Read Replies (2) of 1574854
 
AMD has but one strategy: sell cheap. Intel may take them out in one fell swoop.

Once again, Grove is showing his stripes. On Nov. 24, Intel was reorganized into five marketing and product groups, including a consumer unit to address the no-frills market. The company's next big step is expected in February. That's when analysts predict the chip giant will cover its flank from Cyrix and AMD by slashing prices by as much as 40% on its oldest Pentium MMX chips, to as low as $70, a price not seen since the waning days of the 486 chip.

Cyrix has two strategies: sell cheap and sell additional, built-in functionality. Intel may take them out in two fell swoops:

The more chips you can produce per wafer of silicon, the more money you make. Case in point: One eight-inch wafer of Intel's tiny 233-Mhz Pentium MMX chips contains an estimated 211 chips worth $125,000. The same size wafer of larger 180-Mhz Cyrix MediaGXs is worth only $8,100, says Micro Design Resources.
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