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: milo_morai who wrote (89127)	1/23/2000 10:59:00 PM
From: Dan3	Read Replies (1) \| Respond to of 1572381

Looks like Intel's shortage of high speed coppermines will be ending soon.... Given the new pricing for Athlon, that "demand problem" Intel has been having should go away.... theregister.co.uk Old prices for the AMD parts are shown in brackets. The Athlon 500MHz processor has now moved out of the picture, and the 550MHz Athlon is now the entry level Athlon at $217 ($317). The 600MHz now costs $229 ($335), the 650MHz Athlon $275 ($402), the 700MHz $466 ($580), the 750MHz Athlon $565 ($829) and the 800MHz Athlon, which thus far only is available in a boxed model now costs $790 ($1,154)..... ....These price drops will not be matched by similar cuts across the board from Intel. The early indications from sources close to its plans are that Intel prices are more modest. There is a reason for this. PC vendors are telling us that Intel's Pentium III/600 is in somewhat tight supply, as it brings higher speed Coppermines into its ken. It's a good thing AMD can make money with ASPs of $85 while paying for two FABs with the output of one. ASPs of $85 from two FABs paying for two FABs and AMD should make a ton of money. Now, just as a thought experiment, what happens if the 110 million or so CPUs Intel will sell this year carry an ASP of $100 instead of the $200+ they had last year? $11 or $12 Billion in reduced revenue sounds about right - which works out to a $4 Billion operating loss for the year. Perhaps Intel will decide not to be quite as aggressive about reducing prices this year as they were last year. Dan