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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Scumbria who wrote (61454)	6/11/1999 11:16:00 AM
From: AreWeThereYet	Respond to of 1571808

That's the problem, low-end market is the major reason why AMD received such high support from Taiwan chipset and mainboard makers. AMD helps them to squeeze more juice from the socket-7 money cow with little R&D expense. Will those chipmaker and OEM willing to diverge with Intel to support K7? AMD failed to make a profit with K6s while ASP of Celeron was above $100. Will the small volume of K7 enough to help AMD return to profit? Possible but there is considerable risk involved. On the good side, SIS is happy enough to cooperate with AMD for a system-on-two-chip solution :o) aC

To: Scumbria who wrote (61454)	6/11/1999 11:29:00 AM
From: Tony Viola	Read Replies (1) \| Respond to of 1571808

Scumbria, I don't think so. My guess is that AMD will try to get out of the entry level marketplace entirely. I overheard a well known analyst saying last night that he believes Celeron is selling "at or slightly above Intel's cost". Intel may have that zero profit segment all to themselves before long. Two comments: 1. Has that analyst asked Intel what they make on Celeron? For some reason, on SI and other places, that word shows up often as ANALyst. 2. So what happens when there is only one company in a product or product segment? Prices wouldn't go up, would they? Yousef's closing is appropriate here..."Make it So." Tony