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Politics : Formerly About Advanced Micro Devices

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To: Joey Smith who wrote (58728)	5/19/1999 10:27:00 AM
From: Steve Porter	Read Replies (1) of 1583401

Joey, With all due respect (there's that cliche again ;) ). I think what Tad was trying to point out is that you now hav PIII machines in the price range original targeted for Celeron processors. Manufacturing efficiencies can only go so far to offset large drops in ASP. (i.e. you can only get x die per wafer), and after you have reached the real world maximum (which I'm sure Intel has a long time ago), then the lowered ASPs fall right to the bottom line. The opposite is true of AMD for this comming quarter. AMD's costs per CPU were probably MUCH higher last quarter than this quarter due to poor yields. If you take that, add the seeming increase in speed bin yields, all of a sudden the pricing pressure on AMDs CPUs doesn't look nearly as bad for their bottom line. Another thing I believe Tad was trying to point out (which someone else mentioned earlier on this thread) is that maybe Intel's segmentation strategy is starting to break down. More celeron's in business, more cheap PIIs/PIIIs in the celeron market, and now you have a mess (much like AMD's K6-2/K6-3). Regards, Steve

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