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Politics : Formerly About Advanced Micro Devices

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To: Xpiderman who wrote (32679)5/15/1998 1:50:00 PM
From: Petz  Read Replies (4) of 1580264
 
XYZ: re:<If there is a CPU price war as Tom Kurlak mentioned, I can assure you AMD will be the loser.>

Tell me how. With high speed SRAM, cartridge costs, and 50% larger die size, PII is twice cost of production of K6-2, which equals its performance at same clock speed. What percentage of the market do you think really wants a 400 MHz PII costing $800 right now? If its 5%, I'd be surprised.

Remember what Jerry said last quarter. AMD's business model is to be profitable selling 20M CPU's (annual rate) at $100 (by end of year). Would you care to calculate Intel's profits if they sold CPU's at an 80M annual rate and an ASP of $125?

Petz
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