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

To: Kevin K. Spurway who wrote (26732)	12/13/1997 8:11:00 PM
From: Kashish King	Read Replies (1) \| Respond to of 1574882

The MediaGX is a stellar example of what can be done with an integrated chip but it's prohibitively expensive to make insofar as margins are concerned and not that many people are interested in 486-like performance.

To: Kevin K. Spurway who wrote (26732)	12/13/1997 8:51:00 PM
From: FJB	Read Replies (1) \| Respond to of 1574882

Kevin, RE: 211 chips worth $125,000. Since noone has challenged the accuracy of this figure to this point I'll take the time to point out that it's WAY OFF. The figure represents an ASP of $592 and all chips being sold at the 233MHz speed grade. These are bogus assumptions. The revenue figure may have been accurate at Tillamook introduction. The 200MHz Tillamook currently sells for $423 in quantity and the big OEMs pay a lot less. Intel also sells 120MHz Tillamooks for the mini-notebook market. With Compaq going to AMD and NSM for mobile products in January, Tillamook blended ASP will be in the $300 area. All of a sudden, the revenue per wafer is in the $60K area - a 50% drop in four months. Without a corresponding 50% drop in costs, well... Happy Holidays, Bob