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Politics : Formerly About Advanced Micro Devices
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To: DRBES who wrote (49098)2/9/1999 7:44:00 PM
From: Elmer  Read Replies (1) of 1571806
 
Re: "I really hope that four weeks from today, when Atiq Raza appears and testifies in front of the FTC,
that the issue of predatory pricing is raised. The current version of the cELERON is within 87% to
92% (depending on which set of benchmarks are used) of the performance of the pII. Yet it is priced at a fraction of pII pricing. It also costs more to produce than the pII. If iNTEL ran the rest of its operations with the margins (negative) that it suffers with the cELERON chips it would report losses that would dwarf those of AMD. iNTEL finances its unprofitable cELERON operations with the profits from other products. Their intent is obvious, they are trying to run their competition out of business. This is criminal activity albeit difficult to prove conclusively."

Where is your data showing that a PII is less expensive to manufacture? I think that a good case can be made to suggest that the added cartridge and multiple test steps plus lower yields make the PII manufacturing cost higher than might be thought. The larger die size of the Celeron is somewhat offset by cheaper packaging and test.
As for your claim the Celeron is unprofitable, I suggest both you and Scumbria hold your breath until you turn blue and pass out. That's what some children do when they can't get their way.

EP
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