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

To: Buckwheat who wrote (27357)	12/30/1997 11:59:00 PM
From: Paul Engel	Read Replies (1) \| Respond to of 1574854

Buckwheat - Re: "How many products has Intel introduced as "Server Only" that didn't go straight to the desktop" Here's an eye opener for you. Intel's Pentium Pro production exceeds AMD's current K6 sales (assumed 1.6 Million/quarter) by about 50 to 70%. Moreover, Intel collects more than $139 apiece for these Pentium Pro devices - a LOT more. I'll let you guess what Intel's Pentium II sales rates are - hint - they also exceed K6 sales by a very wide margin! Paul

To: Buckwheat who wrote (27357)	12/31/1997 12:24:00 AM
From: Elmer	Respond to of 1574854

<How many companies make socket 8 / slot 1 chipsets?> To my knowledge, only one, Intel. <Wonder how long it takes to recover the R&D cost of a board or chipset and enter a solid profitability phase?> I would suspect it is fairly quick. Probably just a month or 2 of full production. <Has the product cycle been shortening rather sharply during our progression from the 8086 to the PII?> It is accelerating at a faster rate (the second derivative is positive). It is my view that Intel intends to spend AMD into oblivion. Remember the 80's? The US spent the USSR into bankruptcy. They just couldn't keep up with the US defense spending. Intel is doing the same to AMD and Cyrix. The investment required to keep up with Intel's continious new product development as well as process development is not something AMD can keep up with, especially when AMD keeps posting loses, rather than profits which are needed to fund R&D. Only IBM has the money to keep up with Intel's spending and look at what happened to the PPC. <How many products has Intel introduced as "Server Only" that didn't go straight to the desktop?> The Orion chipset supported 4 processors. This was for servers only and never made it's way to the desktop. How many 4 processor systems have you seen on someones desk? Expect the same thing for Slot2. It will not replace Slot1 but coexist. I believe that because of AMD and Cyrix's presence, Intel will not see the margins they have enjoyed in the past, but they will continue to expand the market and overall profitability. EP