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

To: Tenchusatsu who wrote (92690)	2/11/2000 7:30:00 PM
From: Jim McMannis	Read Replies (1) \| Respond to of 1573857

RE:"The tight supply of 800 MHz P3's are probably due to low production volumes, obviously. But why did the OEM say that 500's are the "tightest, with the 550's right behind them"? Perhaps that's where the consumer sweet spot is." Because that's where the consumer demand for the Pentium IIIs is. They are perceived as mid-grade chips. OTOH, Intel is probably trying to force OEMs to higher MHZ Pentium IIIs so as to maximize profits. Of course we know what Gateway thought of that trick... Jim

To: Tenchusatsu who wrote (92690)	2/11/2000 7:31:00 PM
From: kash johal	Read Replies (3) \| Respond to of 1573857

Tench, re:"?[The] 800's are brutal, very tight,? said a purchaser at one top-tier OEM. ?But 733-MHz and 667-MHz [chips] are loosening up a little bit. Five hundreds are the tightest, with the 550's right behind them.? The tight supply of 800 MHz P3's are probably due to low production volumes, obviously. But why did the OEM say that 500's are the "tightest, with the 550's right behind them"?" I don't think so. I think Intel is DELIBERATELY trying to starve the market of low end cumines and nudge the sweet spot higher to keep margin in shape. The pricing in the 500Mhz range is BRUTAL. AMD has plenty of high Mhz AThlons and can sell whatever the customer needs. Intel has to MANAGE its average ASPS or the stock will be $10 before you know it. With manufacturing problems in high end they are really getting squeezed trying to manintain a $180 average ASP's. This problems could be acute in Q2. Imagine what happens once AMD is yielding at a 800Mhz-1Ghz sweetspot with dresden. Intel has to limit cumine and celeron sales or margins and asps will get trashed. I see 800Mhz parts being SUB $200 next quarter to OEM's. This will be an Intel NIGHTMARE trying to balance ASPS, margins, volumes etc. This coupled with the impending collapse in business PC pricing as IPAQ, EPC etc make inroads is gonna mean BAD news for intel- in the near term. regards, Kash.

To: Tenchusatsu who wrote (92690)	2/12/2000 11:22:00 AM
From: Charles R	Respond to of 1573857

Tenchustsu, <The tight supply of 800 MHz P3's are probably due to low production volumes, obviously. But why did the OEM say that 500's are the "tightest, with the 550's right behind them"? Perhaps that's where the consumer sweet spot is.> Yes, that is where the consumer sweet spot is for PIIIs. That is what I have been saying if you care to backtrack from this message and check what started this all. Somehow you seem to be having a hard time understanding that PIII and Athlon can have different sweetspots. I suggest that you think in terms of pricing and availability. Athlon price curve is set to move the product in the 600/650 range. Compare with PIII price curve and you will see what I mean. Also, both Intel and AMD always try to push their customers upstream. If you haven't noticed Gateway has complained about lack of low MHz parts in Q4. Same thing is going on right now. It is not in Intel's financial interest to sell anymore Katmai/CuMine 500s than it absolutely needs to. It will piss off a few customers but that has to be balanced with making the quarter. Chuck