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To: Proud_Infidel who wrote (2472)	10/13/1999 12:09:00 PM
From: Ian@SI	Respond to of 3813

Brian, The longterm rate in price reductions averages about 30%. During the past few years, that has accelerated much above the average. At some time, and probably less than 10 years out, I'd expect to see regression to the mean. FWIW, Ian.

To: Proud_Infidel who wrote (2472)	10/13/1999 12:11:00 PM
From: Carl R.	Respond to of 3813

I watched them reduce prices for years, and the rate is not constant, but rather is influenced by two external factors, competition, and DRAM/other PC component pricing. When a competitor has a competitive product, the rate of decrease accelerates. This happened when the Cyrix 6x86 was new, and with the K6/Athlon. When competition is out of the running (when the 6x86 fell behind, and the K5 was not competitive) the rate of decrease slowed substantially. During that period DRAM prices were also falling substantially, which also decreased the pressure on INTC to cut prices. Carl