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

To: Mani1 who wrote (86736)	1/12/2000 3:09:00 PM
From: Scot	Read Replies (2) \| Respond to of 1573901

What does Commoditization mean? Basically the idea that products can become valued on certain base terms and be interchangeable, i.e., commodities. As I'm sure you know, commodities are generally tradeable items that can generally be further processed and sold because they are valued in certain base terms. For example: metals, wool, wheat, sugar, coal, iron ore. You buy 10,000 barrels of light sweet crude on the spot market and it doesn't matter whether it is produced by Exxon, ARCO, or Chevron. The idea is that this principle could be applied to chips: "buy 10,000 500mhz x86 socket 7 processors". The argument is that prices will erode if processors are valued like this rather than as Athlons...or Itanics...because they will be interchangeable. It is really more metaphorical for chips...but I think you get the idea. -Scot