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Politics : Formerly About Advanced Micro Devices

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To: Paul Engel who wrote (32368)5/4/1998 4:02:00 PM
From: Ali Chen  Read Replies (2) of 1571378
 
Paul, <Everything will run on the Celeron - not as fast as a
K6-300 but if it is SPEED that is the issue, NOBODY will buy
a K6-300! They will buy an Intel Pentium II - 400 Mhz system!>

Just one opportunity seems to escape your analysis. If the
Celery-Mudochino is so great, and "cheap", and "intel inside",
and "actual performance is not an issue", why would average
customer buy any of the highly overpriced "true"
Pentiums-II-400 ? NOBODY would ever buy a $3000 computer any
more, except for a skinny group of "computer enthusiasts"
(and a heap of loyal Intel investors :) :).
Therefore, the whole bunch of "true" and pricey Pentium-II must
be repriced at $150 level to compete with their OWN PRODUCT.
How do you think Intel will subsidize all these no-margin sales?
With the 5%-thick server market? In this case they would need
to price their server Pentiums at 20X the Mudochino price,
or about $3000 a piece. Very attractive price point indeed :)

<AMD is ... underpriced by Intel's superior cost structure on
the low end.>
Even stripped down, the caseless and cacheless Celery still
counts 90 additional components to solder plus the PCB
itself:
tomshardware.com
Could you enlighten us about how this design, with die size
twice as big as for K6, may have "superior cost structure"?

<Think, ... -- it may hurt and may hurt your pride, but THINK!>
Very good advice. Please practice what you preach.
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