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

To: Tenchusatsu who wrote (86063)	1/8/2000 8:57:00 PM
From: Process Boy	Respond to of 1573088

Ten - <Now, the market segments are fanning out. The high volumes will continue to go lower and lower in margin, while the high margins (servers, workstations, enthusiasts, etc.) are relegated to the low volumes.> I agree with you about the market segments fanning out going forward. How this materializes will be interesting. PB

To: Tenchusatsu who wrote (86063)	1/9/2000 2:53:00 PM
From: Saturn V	Respond to of 1573088

Ref-"I guess before, the real money was found right there in the middle where high margins met high volumes. Now, the market segments are fanning out. The high volumes will continue to go lower and lower in margin, while the high margins (servers, workstations, enthusiasts, etc.) are relegated to the low volumes." You are right the maximum profit is always in the middle. In the past Intel defined the high end, middle, and low end with only one product , and differentiating the different segments by speed. For example the Pentium family was defined by Pentium 100MHz, Pentium 133MHz,Pentium 166MHz and Pentium 200mHz. Again the profit was maximized in the middle. Now with the Timna, Willamette there will be two architectures to define the price performance spectrum. And the maximum profit will again be in the middle of this price performance spectrum.And this time there may even be design tweaks to further refine the segmentation, ala Celeron and Pentium II. So there will be a plethora of Clock Speed, Cache Size and Architecture combinations to define the Low, the Middle and the High End.