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Technology Stocks : Intel Corporation (INTC)

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To: Jim McMannis who wrote (46866)	2/1/1998 10:21:00 PM
From: Paul Engel	Read Replies (2) of 186894

Jim - Re: "So what tricks can Intel use to get the covington-266 to perform on a par with the K6-266?" 1. With NO L2 cache on either of these chips/systems, the perfromance differences will be minimal. The K6 will probably be marginally faster under these equivalent conditions. Don't forget - the K6 will require L2 cache to speed it up. That adds to the system cost. 2. Intel will simply sell the Covington for about $100. Then, INTEL CAN CLAIM PRICE/PERFORMANCE advantages over the K6. Remember - Intel's cost will be below $40 at the get-go. They will make money on this deal at $100 (and lower!). Because the K6 is slower than a Real Pentium II (Same clock speeds) the AMDites yell "BETTER Price/Performnce" - mainly because AMD sells the K6 for cheaper. Well now, INTEL will sell the Covington for CHEAPER. If AMD lowers the K6-266 MHz price below Covington's, then they will lose money faster than they normally would! I'm sure that all falls in line with Intel's strategy. Paul

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