Formerly About Advanced Micro Devices Message Board

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Politics : Formerly About Advanced Micro Devices

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To: Maxwell who wrote (40237)	10/28/1998 12:40:00 AM
From: Paul Engel	Read Replies (1) of 1573092

Low Priest - re: "Unfortunately the mass is quite ignorant of computers. " I will admit that there were 3.8 million ignorant purchasers of PCs last quarter. However, the real battle is now being waged with the OEM's. Intel and AMD will compete head-to- head on performance. Since Intel is a hands down winner on performance, AMD's only response is to DROP THEIR PRICES. And K6-2 prices are plummeting ! Sure, IBM and HP and Compaq will sell some $799 PC's with a $99 (OEM pricing) 350 MHz K6-2. And the 400 MHz K6-2's will be below $199 within two weeks of their introduction. The unfortunate problem for AMD is that the 400 MHs K6-2 will NOT BE a viable BUSINESS/COMMERCIAL solution - since it is uncompetitive with the Celeron and Pentium II offerings of Intel. So AMD will be stuck with CPUs going into low cost - low margin - retail PCs. Meanwhile, Intel's Celeron is making tremendous inroads - and Intel is bringing the price down as their yields continue to improve. Paul

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