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

To: Charles R who wrote (80572)	11/20/1999 6:03:00 PM
From: tejek	Read Replies (2) \| Respond to of 1572099

RE <<<Me thinks the CuMine price cuts have got little to do with AMD and a lot to do with Intel's gross margins. They need to get CuMines adapted fast to make up for falling ASPs. The longer they have to ship the Katmai's the longer the margins will face pressure. If Katmai to CuMine transition takes as long as PII to PIII transition, Intel's profits will be in the tank for 2000. So they are using the age-old strategy of discounting the new product to accelerate adaption.>>> There is another important reason for the price cut; the greatest volume of cumine are coming online just as pc demand will slump seasonally. I believe, then, they have got to get as many sold as quickly as possible so that they are not stuck with a big surplus. ted

To: Charles R who wrote (80572)	11/20/1999 10:18:00 PM
From: Jim McMannis	Respond to of 1572099

RE:"Me thinks the CuMine price cuts have got little to do with AMD and a lot to do with Intel's gross margins. They need to get CuMines adapted fast to make up for falling ASPs. The longer they have to ship the Katmai's the longer the margins will face pressure. If Katmai to CuMine transition takes as long as PII to PIII transition, Intel's profits will be in the tank for 2000. So they are using the age-old strategy of discounting the new product to accelerate adaption."... Exactly why I think Intels ASPs could suffer this quarter...especially so because the Celeron is selling very well and the Floppermine is a couple months late... Jim