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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Road Walker who wrote (106187)	7/26/2000 9:39:14 AM
From: Joe NYC	Read Replies (1) \| Respond to of 186894

John, AMD plans on phasing out a $30 part and replacing it with a more expensive part, and the assumption is that the marketplace will accept the higher price. There is finite demand for microprocessors, there are only X number of PC's that will be manufactured in the 3rd and 4th quarters. By moving to a higher price point, there will be increased competition from Intel for those sales. I think you are missing the point. There is some correlation between price and performance. AMD is not replacing low price CPU with higher priced one. AMD is replacing a low performance CPU with a higher performing CPU, and as a result, the marketplace will award AMD a higher price. The processors and their speeds are a moving target. The bottom of the performance segment keeps getting phased out, and replaced by the second worst moving to the bottom. With K6 removed, Celeron moves to the bottom, with Duron moving to the second from the bottom segment. So Celeron would naturally assume the lowest price, with Duron assuming the Celeron price. But the pricing is not that simple, with Intel being able to receive a % above fair price and AMD some % below fair price, so there will be a shortage of the $50 parts. If Intel does not supply this segment, it will create and opportunity for Via/Cyrix to step in and gain some marketshare. Joe