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.

Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: dale_laroy who wrote (71832)	2/18/2002 12:56:52 AM
From: milo_morai	Respond to of 275872

You're talking about a 25% reduction in Intels ASP's If we see that it's going to be UGLY!

To: dale_laroy who wrote (71832)	2/18/2002 7:52:31 AM
From: hmaly	Read Replies (1) \| Respond to of 275872

Dale Re....What you are overlooking is that Northwood has a smaller die size than the 0.25-micron Celeron (Celeron was 154mm2). <<<<< I am not saying Intel can't physically produce that big of a chip. What I am saying is that the bigger die size of the P4 doesn't equate to higher performance, as Charles suggests it should. Thus at 130mm, P4 will be 50% bigger, with no performance benefit; and that is a inefficient design. Perhaps Intel put in all of those extra transistors to scale up to 10 ghz; as Wanna suggested a wk. ago. Maybe, but right now, it isn't doing it, and the price war probably will be sooner than later. However maybe Intel put in all of those transistors to meet a big die theory, not for performance benefits. If Intel did, then Intel is screwed in a price war as lean and mean wins them; not fat and inefficient. Intel could easily afford to sell the 90nm P4 at an ASP under $100 if they had just enough capacity to meet demand.<<<<<<<<< I believe you are trying to say "Intel could easily sell the 90 mm P4 at an asp< $100 if Intel had the demand and production capacity to sell high enough volumes.." I was reading the other day, that Intel had a production costs of app. ~ $100 per P4 at 180 mm. I don't remember where. otherwise I would link. On this board we have assume a cost of app $60/ XP, for a similar performance chip. If this is true, the extra production costs Intel has will make Intel vulnerable in a price war. It is easy to say. " we are only loosing $5/chip, so we are making it up on volume." You can only make it up on volume, if the market can absorb that volume without caving the prices. Can Intel win a price war? With higher production costs even with 80% of the market and four times the volume of AMD, Overcapacity problems,and a inefficient design of its chip, Intel is in no shape to fight a price war.