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

To: kash johal who wrote (83653)	12/20/1999 1:24:00 PM
From: Petz	Read Replies (3) \| Respond to of 1572562

Kash, re:<Intel has apparently done a mask rev and bin yields have improved. Even if 800Mhz parts are only 10% of total parts in Q1. Out of an expected 10M+ Coppermines that still means over 1M 800Mhz speed grades.> Based on the list price of its new speed grades -- $750+ and $800+, I don't believe the sum of the two speed grades amounts to 10% of what's coming off the line right now. Averaged over Q1, probably 10% of 800 MHz is reasonable, assuming Intel does not have a "CXT" type problem with the new mask rev. And as far as costs to produce the coppermine is MUCH cheaper to manufacture than the Athlon. True, but for 700+ MHz chips, the ASP is over $400. Whats the difference if the incremental cost of production is $40 or $80? Not much unless Intel decides to sell its Pentium III chips for less than $200. Obviously, AMD cannot put Intel out of business on high end CPU's if they are not the low cost producer. But if one company is happy with higher cost of production and 40% gross margins (this includes depreciation) and another company is happy with lower cost of production and 70% gross margins, both companies can coexist and be profitable. Petz