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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?


To: cheryl williamson who wrote (18202)7/26/1999 7:25:00 PM
From: Tony Viola  Read Replies (2) | Respond to of 64865
 
Cheryl,

Well, Tony they disclosed their setup & manufacturing costs
vs. wholesale prices for their Pentiums and Celerons.


Setup and manufacturing costs? Per Pentium and Celeron? Where in the sam hill did you see that?

Fortunately for HWP, they have a good instrumentation and printer
divsion, otherwise they would be toast.


Instrumentation div., you mean the one they're spinning off?

Their stock hasn't done
anything for the last few years, so I don't give the recent rise
much weight.


And how about SUNW? What happens when they get some competition for their high end servers? Next year, IA64?

Tony



To: cheryl williamson who wrote (18202)7/26/1999 7:41:00 PM
From: QwikSand  Respond to of 64865
 
The reason?? Setup costs on a per-processor basis are not that much less for a cheaply made processor than for an expensive one. That's why INTC keeps trying to target its chips...

Yes...try zero. Microprocessor Reports, the reliable and authoritative chip newsletter started up by Michael Slater and read solely by computer professionals, did a really excellent piece less than a year ago about the utter phoniness of Intel's Celeron-Pentium-Xeon stratification scheme. They basically laughed at Intel, saying in effect "this is a pretty weak fiction to try to base a company's margins on". The gist of it, as I've posted here before, is that all the current Intel processors are the same chip modulo the size and speed of the cache, the front-side bus, the packaging, with possibly some traces cut to cripple multiprocessor features on the Celeron. But the P6 core is identical in all of them. (Note: this has changed slightly today because they haven't yet released a Celeron with the newer SIMD instructions or a 100Mhz FSB; Celerons are still Pentium II's...yawn.) The very idea that there can be a 12x price difference to the end user is a bad joke. As far as silicon goes, it's all the same thing. Look at any benchmark that compares the Xeon with a similar Pentium. The difference is 5% no matter what you do (unless Intel runs it themselves in which case suddenly the Xeon looks like a real speed demon); but the chip is 60-70% more money. More importantly, the price/performance gap is similar between a Celeron and a Pentium with the same clock and FSB speeds. Intel is pulling a flat-out scam; and we have no shortage of posters on SI who are buying it.

Don't you hate it when that happens<g>?

Regards,
--QwikSand