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

To: Charles R who wrote (74006)	10/5/1999 12:26:00 PM
From: tejek	Respond to of 1573063

RE <<<Someone at Intel gotto be shi**ing bricks. ebnews.com; It keeps getting better and better.....now if AMD can just come through tomorrow. ted

To: Charles R who wrote (74006)	10/5/1999 12:33:00 PM
From: DRBES	Respond to of 1573063

re: "Someone at Intel gotto be very concerned." Probably only the stockholders and management, a soon to be shrinking group. Regards, DARBES

To: Charles R who wrote (74006)	10/5/1999 12:45:00 PM
From: Charles R	Respond to of 1573063

<Note the unnamed processor with built in L2. I wonder what it is ;-)> That should have been "without" instead of "with"

To: Charles R who wrote (74006)	10/5/1999 1:40:00 PM
From: Maverick	Read Replies (5) \| Respond to of 1573063

CNBC: Pentium III To Hurt AMD Oct 5 1999 6:07PM ET More on Tech Focus... Tech Focus: Pentium III To Hurt AMD by Keith Kirkpatrick CNBC.com Contributor The arrival later this month of Intel Corp.?s {INTC} new mobile Pentium III processor is likely to not only further depress the prices of Advanced Micro Devices Inc. {AMD} processors but also the latter company?s stock price. By providing more processing power at prices comparable to the older Pentium II processors, analysts say that both corporate customers and consumers will be clamoring for a new notebook with a processor from Intel ? rather than from Advanced Micro ? inside. Advanced Micro received a major blow last month when Gateway Inc. {GTW} announced that it would no longer use the company?s processors in its systems. Moreover, the aggressive pricing of Intel?s newest mobile processors is likely to put more pressure on Advanced Micro?s already-low margin business. Intel -- which holds about 90 percent of the overall notebook-processor market -- will offer notebook manufacturers mobile Pentium III processors running at 450MHz and 500MHz for $348 and $530, in quantities of 1,000, respectively. Meanwhile, 400MHz Pentium II mobile processors are being offered at $500 in quantities of 1,000, despite being older technology. Comparison Chart: INTC vs. AMD 52-week stock performace Unlike standard desktop Pentium III chips, these mobile Pentium IIIs contain integrated cache memory, which speeds performance. "The focus at introduction is for premium business systems and premium consumer systems," says Sam Wilke, an Intel product-marketing manager. "You have a 25 percent megahertz jump, and for most productivity applications, there?s a 20 percent performance jump." Combined with a faster 100MHz system bus, or pipe that carries data, and the inclusion of special streaming-data instructions, Pentium III-based notebooks are designed to offer a 100% performance increase on multimedia and graphics applications, compared with a Pentium II notebook. Analysts say that regardless of actual computing needs, claims of performance gains tend to sell computers. "It had been surmised since the late 1980s that [because] the previous generation of processors satisfied requirements, there would be very slow adoption of the latest and greatest," says Richard Whittington, a semiconductor analyst with Bank of America Securities. "But that?s not the way the world works. At a price, performance sells." Analysts add that the combination of a higher-powered machine being offered at the same or better price points as older technology will undoubtedly put pressure on competitors such as Advanced Micro, which has concentrated on the lower-end of the market with its K6-2 processors. Existing Pentium II notebooks that are already in the channel will also likely be reduced in price to make way for the new Pentium III machines. "History shows that Intel likes to ramp pretty quickly, so naturally there?s going to be price pressure on Pentium IIs," says Randy Giusto, vice president of worldwide desktop and mobile research with International Data Corp., of Framingham, Mass. "But they also want to counter against AMD, which has gained some ground on the low end of the market. By pricing down Pentium II aggressively, you kind of price on top of K6-2." Intel?s pricing scheme is clearly aimed at hurting Advanced Micro, and Pentium III could be the final straw. "Intel?s strategic intent is to deny AMD gross margin dollars, which they could then use on R&D and marketing," Whittington says. "[Intel] doesn?t really need to be as aggressive as they have been in pricing, because of AMD?s lack of execution on processors. [AMD] has executed very badly on the K6 and K7, and Athlon does not seem to be enjoying early success." cnbc.com