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

To: Paul Engel who wrote (67865)	8/6/1999 7:42:00 PM
From: Scumbria	Respond to of 1576160

Paul, I'm glad AMD was up today - you sure tuck your tail and hide when AMD goes down. Get serious. Scumbria

To: Paul Engel who wrote (67865)	8/6/1999 8:11:00 PM
From: Dan3	Read Replies (2) \| Respond to of 1576160

Re: Wall Street sure thinks so. Wall street may be begining to change its mind. Intel has a teriffic business plan: Segment the market into economy and performance parts using celeron and pentium III processors. Put up a celeron at the clock speed of anything that AMD produces. Tell people that the celeron / AMD speed stuff isn't worth much for real work. Then keep the "pentium" class chips priced high enough to pay that 4 billion annual depreciation off and let the moderate price stuff rack up earnings. Make sure the performance chips are always a good 2 to 3 speed grades faster than the fastest "value" chips so the market can tell them apart. But now articles are coming out saying that anybody who buys a Pentium XX instead of a celeron at the same speed is being made a fool of. And AMD is finally catching up in speed grade so that intel has to either make the "value" chip the same speed as the "performance" chip, or give up trying to present the case that AMD competes only in the "value" area. So they had a 600MHZ coppermine ready to go and they had to junk it, since with AMD at 600MHZ, forcing them to ship a 550MHZ celeron, they risk losing the "performance" halo in the market. Intel seems to be hoping (and I think they stand a good chance of lucking out, at least for a while) that they'll ship a 700MHZ coppermine at .18 aluminum before AMD gets its Dresden fab running. Then they can ship the next "performance" chip without destroying their business plan. But if AMD does get some production out of Dresden starting in November, what can Intel do? Push Coppermine out to January in the hope that they'll beat AMD to 1 GHZ? What if AMD ships 1GHZ parts in January? Does Intel delay the coppermine till 1.2GHZ comes out in the fall of 2000? When does intel get to ship a new chip? And how could some of the posters on this list complain about intel being a bully. Here AMD had a cost problem due to the Athlon needing a new motherboard that costs an extra 100 bucks so what does intel do? Why they saddle themselves with a memory technology that gives them a 100 dollar penalty on their coppermine motherboard! What a bunch of sweethearts to do that so their friends at AMD will have a level playing field. :-) Dan