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

To: Dan3 who wrote (71066)	9/5/1999 12:20:00 AM
From: Process Boy	Read Replies (1) \| Respond to of 1575328

dan3 - <This is why you only want a small percentage of chips at the highest speed and many speed grades. Then you capture most of what buyers are willing to pay and don't forego profits.> Even so, I would think you would want your highest speed grade a little more visible, at least listed on the various pricewatch services as available. JMO. PB

To: Dan3 who wrote (71066)	9/5/1999 2:51:00 AM
From: dumbmoney	Read Replies (1) \| Respond to of 1575328

The slope of the demand curve for CPUs is quite steep. If AMD marketed only 600 and 650 Athlons and were producing equal quantities of each, then in order to get sell through at the highest speed grade they would have to reduce that price to whatever the 50th percentile customer was willing to pay. Athlon isn't 100% (or anywhere close) of the x86 CPU market, though, so this logic doesn't apply. Further, "sandbagging" in this sense doesn't mean you don't ship the fastest chip you can; it just means you sell some fast chips as slower chips. To get back to reality, I don't see any demand for "slow" (i.e. a couple speed grades behind Intel's fastest) Athlons. Higher MB costs make the "slow" Athlon unattractive even at a silly low price. Clearly, AMD is not "sandbagging" anything.