aj: <<as the K7 causes them to lower margins on PII, PIII and Xeon chips. >>
The squeeze shall start shortly even before K7: Please read today's new at theregister.com
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Posted 28/01/99 12:33pm by Mike Magee
Intel's Merced undercut by Compaq's Alpha
Alpha partner Samsung is now selling fast processors for as little as $250, it has
emerged.
According to confidential documents seen by The Register, .25 micron 533MHz
Alphas will ramp to high volume in spring. They currently cost $250/1000.
And when the 800MHz Alpha is released later on this year, it will also be priced at the
$250 volume mark.
Intel is expected to price its Merced processor, sampling in June and expected next
year, at over $1,500.
The information shows that Compaq, Samsung and the other Alpha partners are
serious about taking on Intel in the high end server market.
The pricing information we have seen means that large PC OEMs, including Compaq,
Dell and HP, can ship 64-bit systems this year, possibly using Linux rather than NT, at
a fraction of the cost a Wintel box will cost. ®
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Hopefully, the squeeze on all front of Intel's MPU line shall stablize all players' ASP across board.
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