Paul,
Re: "Intel's should be $410,000 to $450,000/employee/year for 1997."
This is a huge productivity difference between Intel and AMD ... based on the discussions on this thread, I would have thought that AMD would be "lean and mean", while Intel carries all the "overhead" ... WRONG.
Here is another news FLASH: HP To Unveil Sub-$800 PC
biz.yahoo.com
Sunday January 4, 6:00 pm Eastern Time
Hewlett-Packard to unveil sub-$800 PCs
SAN FRANCISCO, Jan 4 (Reuters) - "Hewlett-Packard Co will unveil Monday an even lower-priced entry in the sub-$1,000 PC category with an Intel-based multimedia PC for the home market, starting at $799.
''This is the lowest price point we have ever hit at introduction,'' said Webb McKinney, general manager of H-P's Home Products Division. ''We are getting more aggressive at the low end of the market.
The sub-$1,000 PC category is quickly becoming the fastest-growing area in the home computer market. In the fourth quarter, according to preliminary data, 38 to 39 percent of all consumer PC sales were in the sub $1,000 arena, according to Computer Intelligence, a La Jolla, Calif.-based research firm.
''It's an important trend,'' said Aaron Goldberg, an analyst at Computer Intelligence. ''It helps the penetration of (PCs in) all households. The important thing to remember is that prices are not going to go back up.''
H-P's $799 model, the Pavilion 3260, is designed around a 200-megahertz Intel Corp (Nasdaq:INTC - news) Pentium Processor with Intel's Multimedia technology, MMX, and 32 megabytes of memory.
''That's a pretty decent computer. It doesn't do everything the high-end system does...but if what you want is something for the kid's room to plug into the Internet, it's a nice product for $799,'' said H-P's McKinney. ''Prices will continue to edge downward as long as the entry-level model does what people want.''
H-P will also introduce more powerful models in its Pavilion home PC family, including a $1,099 model with a 233 megahertz Pentium, the Pavilion model 8240.
H-P will also unveil a PC designed around the 266 megahertz Pentium II for an estimated retail price of $1,699. Other features of the some of the new PCs include software that lets users e-mail photographs, create personalized greeting cards and produce home videos.
''This is a heck of a nice machine for $800,'' said Goldberg, adding that the low prices were consistent with H-P's aggressive stance in the PC market and that Intel is also helping PC makers offer lower prices by cutting chip prices.
Just two weeks ago, Intel cut the price on its entry-level Pentium II 233 megahertz chip by 33 percent, to fuel more sales of PCs in the seasonally sluggish post-holiday period." |