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

To: steve harris who wrote (88577)	1/20/2000 3:47:00 PM
From: Scot	Read Replies (1) \| Respond to of 1573201

Steve, Tench, On price drops: I was also surprised by the big drops, but I think you guys are overlooking the fact that K6 prices did not decrease AT ALL according to Sharky's. AMD sold 5.2M K6's last quarter and a portion of Q4's success can be attributed to the harder ASPs at that end. It is inevitable that Athlon ASPs decrease as the lower speed grade K6's are phased out and Athlon's take their place. Jerry said yesterday that it won't be until Q4 that the mix is all Athlon. With the K6-2 500 at $79, and new speed grades on their way (i.e., 533), ASPs should actually improve as most K6-2's sold are 500 and above. As far as being demand limited, that may be for the time being....but I would certainly not equate the current situation with the K6-2 ASP fiasco. Vendors are using the Athlon because they have more confidence that AMD can provide a supply of high-performance chips equal to or better than the competition. With the K6, everyone knew that the floating point performance was not as good as in chips with the Pentium Pro core...but AMD was willing to undersell Intel to gain market share and OEMs were willing to take a chance on the economics alone. AMD can not only compete on the basis of price, but can compete for the performance market as well. Another point....with Dresden, AMD will have the capacity to supply multiple large OEMs. Going the AMD route will no longer have as significant supply risks as encountered before in the FAB25 problems. I think GTW is proof of this equation. -Scot

To: steve harris who wrote (88577)	1/20/2000 4:16:00 PM
From: Tenchusatsu	Respond to of 1573201

Steve, <Would you consider buying an Athlon?> Believe it or not, if I were building a new system right now, I would consider it. Not because of performance (Coppermine performs just as well as Athlon, in my opinion), but because of the huge price differential. But as of now, I'll probably just upgrade my Slot 1 system to a nicely priced Pentium III (550 MHz, if I had to choose now). Then in the far future, I'll probably go straight for a Willamette proliferation. Maybe even Deerfield (future IA-64 for desktops), whenever that arrives. Tenchusatsu