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

To: Al Seim who wrote (25442)	11/1/1997 3:48:00 PM
From: Paul Engel	Respond to of 1580018

Al - Re: "BTW, I realize that the problem of the moment is production, not pricing, but this pricing issue has bugged me for months." AMD's 25% "Less than Intel " pricing started out as 25% less than the Pentium Pro. (The Pentium II wasn't announced at that time). It didn't sell at that time. If you recall, no major OEM's announced K6 machines at AMD's K6 launch. Very quickly, Sanders et., al., retargeted the pricing of the K6 towards the Pentium MMX. They subsequently managed to get DEC and IBM as purchasers of the K6. I think AMD is just facing a market reality - most K6 PCs sell at a discount to a comparably equipped Intel Pentium MMX machine. The net result for the PC manufacturer is nearly a "wash" - a lower cost CPU but a lower sales price on his end product. Paul

To: Al Seim who wrote (25442)	11/1/1997 6:52:00 PM
From: Ali Chen	Read Replies (1) \| Respond to of 1580018

Al and All, <perhaps AMD have to undercut this far to attack a 90% market leader> In addition to agressive cut in pricing, Intel uses a "reimbursement program" for "Intel inside" advertising: exchange2000.com "we reveiw all the ads that are submitted for reimbursement through the Intel Inside Co-op Ad program. If they don't adhere to the guidlines then they don't get reimbursed. John Hull, Intel Corp." Does anyone know how much this would be per Intel's CPU? Regards, Ali