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Technology Stocks : AMD:News, Press Releases and Information Only!
AMD 214.11+3.9%Nov 26 3:59 PM EST
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To: Francis Chow who wrote (6105)5/13/1998 11:56:00 AM
From: Ali Chen  Read Replies (3) of 6843
 
Francis, <Even if they release a good Celeron .. they've damaged
the brand name,> I am not sure about the brand name,
but they definitely will have a back-fire effect from
their "high-frequency" paradigm. For a general customer
the message from the veg is clear: "if the veg can go
to 400MHZ and can do all I want for $150, why should
I waste extra $600 on some other Pentium-400?"
To gain 15% performance on obscure benchmarks?

The consequence is quite predictable - less sales for
"real" high-priced Pentiums, all prices will tend to
the $150-$200 range, no fat profits from the whole
line of products. That will be a real BOO BOO.

With Celery, Intel is going to compete with it's
own products. Some of Intelons over here still
cannot get it.

To subsidize the vegs Intel wants to charge $2,000 per 1MB
of L2 cache on Xeons! With the whole server market of
about 2M units/year, I do not think it would help their
gross margins. IMHO.

- Ali
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