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Politics : Formerly About Advanced Micro Devices

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To: Brian Hutcheson who wrote (40228)	10/27/1998 11:55:00 PM
From: Tenchusatsu	Read Replies (1) of 1573862

<PS How do you like that the 300mhz raised to $144 BECAUSE THE CHIP IS IN SO MUCH DEMAND.> Brian, AMD lowered the 333 MHz K6-2 to $136, meaning that the $144 300 MHz version is more expensive than the 333 MHz version. At first glance, this would suggest that AMD is yielding well on the higher speed versions of K6-2, and that they're trying to phase out the 300 MHz speed grade. But now that I think about it, this doesn't make any sense. The Pentium MMX was priced high in its final days of its phase-out, but that's a whole different generation of CPU, and Intel wanted to move away from Socket 7. The K6-2 300 MHz and 333 MHz versions are just way too similar to justify phasing out the slower one for the faster one. Does AMD want to act like a charity and convince people to move to the faster K6-2 by lowering its price? There are better ways to do this, like keeping the price of the 333 at the same level as the 300 and letting the market shift naturally, instead of creating a "local minimum" on the price curve. I mean, what's AMD going to do when it succeeds in shifting the "huge demand" from the 300 to the 333? Raise prices on the 333? Tenchusatsu

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