Comparing all the chips mentioned in Business Week, the AMD K6 has a highest cost of production even comparing with the Cyrx one. The main point is that the K6-266 has been delayed for so long, and AMD policy is to keep its price below Intel's about 25%. Thus, even K6-233 yield is over 50% (assumed it's true), Intel still has plenty of room to cut price on its 233MMX (cost just 50 comparing to 70 which is the cost of K6-166)or its stripped down Pentium II to force AMD to the same percentage of profit margin or even break-even.
PRODUCT INTRODUCED LATEST EST'D EST'D
PUBLISHED MANUF. GROSS
PRICE COST MARGIN
PENTIUM MMX, 233-MHZ June 2, 1997 $300 $50 83%
PENTIUM II, 266-MHZ May 7, 1997 530 103 81
PENTIUM, 200-MHZ June 10, 1996 106 40 62
PENTIUM PRO, 200-MHZ Nov. 1, 1995 487 144 70
AMD K6, 166-MHZ Apr. 2, 1997 84 70 17
CYRIX MEDIAGX, 180-MHZ Feb. 20, 1997 81 45 44
PRODUCT INTRODUCED TYPICAL PROCESSOR
SYSTEM COST
PRICE* PERCENT
PENTIUM MMX, 233-MHZ June 2, 1997 $1655 18.1%
PENTIUM II, 266-MHZ May 7, 1997 2363 22.4
PENTIUM, 200-MHZ June 10, 1996 1252 8.5
PENTIUM PRO, 200-MHZ Nov. 1, 1995 3190 15.3
AMD K6, 166-MHZ Apr. 2, 1997 1040 8.1
CYRIX MEDIAGX, 180-MHZ Feb. 20, 1997 799 10.1 |
