Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Cirruslvr who wrote (62730)	6/22/1999 10:23:00 AM
From: Charles R	Read Replies (1) \| Respond to of 1578557

Cirruslvr, <So it looks like AMD is pricing the Athlon at $30 more than Intel's one speed-bin less PIII. This could be done to offset the higher cost of motherboards because the first ones will probably be expensive AND to make K7 systems cost less. For example, the K7 550 will cost $200 less than its counterpart. These are compete guesses, but maybe $50 could be to offset the cost difference and $150 for to make the system cost less. > Assuming the prices are true, I believe 500MHz is seeding the market. I share the idea about making the chip attractive for OEMs by offsetting some of the cost increases on the motherboard side. <production % 500 - 30% 550 - 60% 600 - 10% We get $433.> Your ASP guess is pretty close to mine and I think it is probably not far off the mark. I have also heard the stories about not yielding too many 500 MHz parts and I am still not 100% certain they will launch a 500 MHz chip (my guess was 550/600/650 at launch). For now, I believe that 500 MHz at launch will happen and my hunch is that this is a marketing ploy to get some big OEMs into the fold quickly. This could also put enormous price pressure on Intel if they don't play their cards right. I would very seriously doubt if AMD makes any 500MHz K7 parts for the Christmas season. <"Wholesalers and motherboard makers in Southeast Asia say there are more than 2 million to 3 million AMD chips floating around and the company's latest price cuts are a desperate act to ship more chips." So that confirms there is a glut of K6-Xs in Asia and possibly AMD>. Let's say the 2-3Mu AMD chips floating around is true. Paul says AMD will sell 4Mu, I say closer to 5Mu. For argument sake let's stick with Paul's number - this means AMD produced 6-7Mu K6s in addition to all the K7 build-up. Does this make sense? I think the scenario is that 2Mu of combined (INTC, AMD, CYRX) product floating around which should clear the channel in about a month. Q3 should be much better for AMD and INTC. Chuck