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.

Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: Tenchusatsu who wrote (24461)	7/9/1999 4:34:00 PM
From: kash johal	Read Replies (2) \| Respond to of 93625

Tench, Re:" AMD only sold about 3.8 million chips last quarter, even though they made 6 million. Demand wasn't there for AMD chips. (Makes you wonder whether the sub-$1000 market is indeed growing as fast as you think.) OK, if we split things out a little more, then we'll create three categories: 1) Low-end: Celeron, Pentium II (400 MHz and below), AMD K6-x, Cyrix: 16 million 2) Mid-range: Pentium III, Pentium II (450 MHz): 12.5 million 3) High-end: Pentium II/III Xeon: 1.25 million Seems like Pentium III is still a large chunk of the pie. I hope you get the point." Well Tench, I see PIII 450's in sub 1K machines all over the place. Currently average PC prices are around $900 and heading south. Folks are not going to add a $300 COST ITEM FOR NO PERFORMANCE INCREASE. The market is very price sensitive these days -- including the business market. In fact business is buying up celerons at an alarming pace. This is one of the reasons that analysts are worried about Intels quarterly numbers. If price was no object everybody would have thrown away CD-ROMS and bought DVD-ROM as std in PC's. Even with a modest price adder- most PCs sold still have CD-ROMS. I can see folks who buy 550 or 600Mhz PIII's willing to pay the extra for the ultimate in a performance PC. These PCs retail for $1800-2000 so a 10% cost delta is modest to the aflluent few who buy high end machines. But in the $1000 and below segment a $300 cost adder is untenable. Regards, Kash