I APOLOGIZE IF THE FOLLOWING HAS ALREADY BEEN POSTED:
IBM leans on AMD's K7 for new PCs
> By Brooke Crothers and Michael Kanellos
> Staff Writers, CNET News.com
> June 23, 1999, 11:25 a.m. PT
>
> NEW YORK--IBM will showcase the power of the new K7/Athlon chip from
> Advanced Micro
> Devices when it brings out a fancy, high-end consumer PC packing the
> chip
> this summer.
>
> Big Blue's move could present a challenge to Intel's high-end PC
> dominance
> and the key to AMD's survival.
>
> IBM will bring out the high-end Aptiva S series computer with AMD's
> coming
> K7 processor and a novel industrial design,
> according to industry sources familiar with the announcement. The
> K7/Athlon, meanwhile, may officially be
> announced later this afternoon in a conference call.
>
> Behind closed doors, IBM is demonstrating the computer at PC Expo
> here,
> according to sources. IBM would
> not comment.
>
> The S series is IBM's flashiest, most-feature-packed consumer PC line
> and
> is usually reserved for the swiftest chips from Intel,
> such as the fastest Pentium III processors.
>
> Entry into the S series would be a big boost for AMD, which has seen
> most
> of its chips confined to machines costing less than
> $1,200. The K7, which sources say will likely be marketed as the
> "Athlon"
> processor, represents a potential break with the past
> for AMD.
>
> The chip's innovative design has received rave reviews from analysts,
> who
> say it should equal or surpass Pentium III in
> performance. A 600-MHz Athlon, one source said, will equal a 700-MHz
> Pentium III. Test drivers of beta models say the chip
> "smokes." Along with IBM, Compaq Computer is expected to release
> Athlon
> systems later this summer.
>
> A recently announced delay in Intel's 600-MHz
> "Coppermine" chip, a souped-up Pentium III, has
> given AMD a historic chance to wear the
> performance
> processor crown for PCs for potentially the
> rest of the year. Athlon-based PCs are expected
> to
> start hitting store shelves when the chip goes
> into volume production toward August, said
> sources,
> and run at 500 MHz, 550 MHz, and 600 MHz,
> with faster speeds following.
>
> A press conference today at 2:30 p.m. PT may
> provide
> details on the K7/Athlon release.
>
> Euphoria, however, must be tempered by history.
> AMD
> has a history of fumbling product launches
> and not being able to manufacture high-end
> chips when
> they can command premium prices. Foiled
> manufacturing strategies have led to severe
> quarterly
> financial losses in the past two years despite
> market share gains. The company has said it
> expects
> losses for the current quarter and is in the
> midst of layoffs.
>
> Still, the opportunity exists.
>
> "If they can get 700 MHz out of the chute, they
> should be able to do some real damage to Intel, "
> said Martin Reynolds, an analyst with
> GartnerGroup
> Dataquest. Intel's fastest processors currently
> run at 550 MHz, though a standard 600-MHz
> Pentium III
> is expected soon, with Coppermine to
> follow.
>
> IBM, Compaq, and Hewlett-Packard, to mention
> only a
> few PC makers, already use AMD K6-2
> processors in a wide range of consumer models
> but not
> in the frill-laden, top-of-the-line machines
> such as IBM's S series or Compaq's 5700
> Presario
> line.
>
> IBM's S series typically comes with rich features that any power user
> can
> brag about, including massive 25GB hard drives,
> advanced sound capabilities, and the fastest graphics processors,
> with
> price tags to match: usually $2,000 $2,500.
>
> More profit for AMD?
> For AMD, inclusion in high-end PC lines could mean better profits.
> Intel
> commands up to $744 for its fastest desktop chips and
> enjoys an average selling price around $225. By contrast, AMD has
> struggled, and repeatedly failed, to bring its average selling
> price to $100. Last quarter, the average AMD chip cost $79, a low
> figure
> mostly caused by a price war being waged by the two
> companies. The price war may temper, analysts have said, with a
> successful
> launch of the K7 because the chip will compete
> against the pricier Pentium III. Most AMD chips now compete against
> lower
> priced Celeron chips from Intel.
>
> But there is also a trend that's working against these hot-rod
> computers,
> which does not bode well for either Intel or AMD.
>
> "Megahertz doesn't really matter all that much anymore," said Carl
> Everett,
> a senior vice president at Dell Computer in charge of
> the personal systems group. He said that the faster the speeds get,
> the
> less discernable the improvement, because the
> percentage improvement diminishes as the number gets bigger.
>
> Moreover, many users are now stressing Internet connection speeds and
> Net
> connection software as the real benchmark for PC
> performance, according to Everett.
>
Regards,
DARBES
I am not sure if the cited date is correct. Some of the information would seem to be news. |
