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To: Gary Ng who wrote (113514)	10/13/2000 9:52:09 PM
From: Elmer	Read Replies (2) \| Respond to of 186894

Re: "There is one think I find it interesting in AMD's cc. Jerry said they can sell ALL Athlon they can make in Q4 but Duron will very much depend on chipset. What puzzle me is that if the demand will be so strong for Athlon, isn't it easy just to crank out more Athlon and less Duron to meet the demand?" Bingo! I think a objective analysis of AMD's fab capacity and Athlon output shows they have yield problems that limit production. Plain and simple. EP

To: Gary Ng who wrote (113514)	10/14/2000 12:10:24 AM
From: Joe NYC	Read Replies (1) \| Respond to of 186894

Gary, What puzzle me is that if the demand will be so strong for Athlon, isn't it easy just to crank out more Athlon and less Duron to meet the demand? The problem is that the Copper Athlons from Dresden go from 900 MHz fo 1.2 GHz, but AL Athlons from Austin only go from 700 MHz to 1 GHz. Dresden can produce only about 3 to 3.5 million chips, which is really the upper limit. I don't think AMD wants to produce too many Athlons in Austin and end up with low speed parts. AMD wants to keep the Athlon name for performance parts. The chips below 900 MHz will soon cost $100 and they will be all Durons. Joe

To: Gary Ng who wrote (113514)	10/14/2000 12:50:39 PM
From: Paul Engel	Read Replies (1) \| Respond to of 186894

Gary - Re: "What puzzle me is that if the demand will be so strong for Athlon, isn't it easy just to crank out more Athlon and less Duron to meet the demand? " The demand for the AthWiper is LIMITED at the price points that Sanders wants to sell them for. Rather than LOWERING those price points too much, he is using the Durong to attract the cheapo customers - and get the volume. That is Sanders' version of copying exactly Intel's segmentation strategy. The trouble is - AMD does not have the "mobile" segment and the "XEON" segment to give them added profits and prestige. A further problem is that the Internet AMD cheerleader sites are all trumoeting that the Durong is a MUCH better value than the AthWiper - and nearly as fast - so the core of AMD's customer base - which reads these sites - is now shifting to DEMAND the Durong - and that will drive AMD's ASPs lower - rather than higher. Paul