Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Bill Jackson who wrote (82049)	12/4/1999 12:48:00 PM
From: Elmer	Respond to of 1573092

Re: "So now the Athlon comes along and to place AMD in that same zero profit point they will have to cut all the coppermines of all speeds. " The CuMines on the .18u process are cheaper to make then their .25u counterparts and with the cache on-die there is a further cost reduction when eliminating the srams. A still cheaper PPGA package and lower test costs means Intel can significantly lower the price yet keep the profits. Re: "The xeons will stay high, but AMD has a xeon killer in testing as we speak(I surmise this as a logical thing to do on the part of AMD) and so sometime in 2000, Q2/3 there will be an attack on the xeon." By that time Xeons will be out with 2Meg+ on-die cache, Willamette will be hitting the scene and it's server version Foster will move x86 server performance to a new level. I don't see Athlon making significant inroads into the SMP server market. EP

To: Bill Jackson who wrote (82049)	12/4/1999 12:55:00 PM
From: Joey Smith	Read Replies (4) \| Respond to of 1573092

Bill, I guess I differ in opinion with You, Charles, Jim, etc. in that Athlon will command any sort of price premium to CuMine. From what I hear, cost reductions have been greater than expected going to .18m and this WILL be reflected in Intel pricing across the board, from high-end to low-end, once volumes are there (Q1). High-end pricing will be much lower than traditional Intel high-end pricing. I believe AMD has to respond accordingly, meaning selling their high-end at a discount to Intel's high-end. Honestly, I don't think this pricing will affect Intel's profits or margins, but revenue and ASP will take a hit. The effects? Investors probably will react negatively. I'm just talking about the desktop market. Also, if AMD has a Q1 1G Athlon chip in volume compared to 800M chip in volume for Intel, the above doesn't hold either! Just my take. I'm just here to make money like everyone else. Joey