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

To: Dan3 who wrote (153945)	1/6/2002 7:24:37 AM
From: Dave	Read Replies (1) \| Respond to of 186894

Dan, Remember that Intel has traditionally had ASPs of almost twice AMD's, now quantispeed Athlon XPs sell for close to the price of nominal speed P4s. Note that a 1.6GHZ AthlonXP sells for almost twice the price of a 1.7GHZ P4. That's a pretty big change from last year. History repeats itself again. Remember Cyrix's strategy where they attempted to sell their 6x86 uP for more than a comparable Intel processor? The strategy didn't work. On the other hand, AMD then offered to sell its K6 processor at a discount to a comparable Intel uP. What happened? Intel then marketed the Celeron processor and AMD had to undercut the Celeron by 25%. PR rating didn't work either and AMD chose to compete MHz v. MHz against Intel. Now they are going back to PR ratings. Marketing tells us that one cannot compete on price alone. AMD must distinguish its products and offer the end user value. That will be the only way for AMD to compete. AMD no longer enjoys the luxury of utilizing a standard bus architecture. Instead AMD must develop their own, therefore taking away valuable resources from uP development and reallocating them to next generation bus architecture development.