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Politics : Formerly About Advanced Micro Devices
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To: gnuman who wrote (26830)12/17/1997 1:01:00 PM
From: Ali Chen  Read Replies (1) of 1576830
 
Gene, <About the time AMD brought out the 286 Intel crashed prices on its' 286 while introducing the 386. I think the same happened with the 386, 486, and K6. In each case I believe Intel greatly lowered prices on the previous generation concurrent with the introduction of it's newest product. Could be the main reason AMD has never enjoyed high margins.>

All you've said is correct for the past generations of CPU, when the system performance gain between generations was at least two-fold, or 100%. Today the jump to the "newest" P-II gains no more than 25%. This difference is hardly noticeable for human beings, and therefore the transition to P-II is not well justified for customers. The only contr-argument here is the huge Intel manufacturing capacity, and the question of survival of the Socket-7 infrastructure when Intel will discontinue their chipsets.

Due to the apparent lack of sufficient performance advantages, the sharp price drop for Pentiums has a stong side effect on P-II sales.

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