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Politics : Formerly About Advanced Micro Devices

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To: Ali Chen who wrote (41198)11/10/1998 8:37:00 PM
From: Petz  Read Replies (1) of 1573683
 
Ali, you are right that a customer would not pay more for a K6-3-XXX than for a Pentium II-XXX, even if the K6-3 at same MHz ran 10% faster.

If AMD/Intel parts run equally fast, AMD will discount it 25%.
If AMD part runs 10% faster (same MHz), AMD will discount it 15%.
If AMD part runs 25% faster (e.g., K6-2 vs. Celeron), AMD will sell at parity.

That's the marketplace and thats why it doesn't make sense to produce a 350 MHz Sharptooth. At most, it would sell for 20% more than the K6-2-350 and cost 20-30% more to make.

Petz
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