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To: Joey Smith who wrote (48277)2/21/1998 8:25:00 PM
From: Paul Fiondella  Read Replies (1) | Respond to of 186894
 
Braindead Covington margins and Intel profitability

From what I have read we are talking about an $86 CPU. The only way you can make money on a chip priced so low is volume. Since the chip is grossly underepowered vs say the K6-233 selling at a $150 price and using a Socket 7 and thus less expensive motherboard then there is no way Intel can dominate the low end market with this Braindead Covington on a competitive price/performance basis.

That leaves only one other way Intel can make money on the chip --- forcing the market to use it. That brings us back to monopoly practices.

Will Intel say to CPQ, either you use our Braindead PII chip or we will not give you our Slot II P II? It certainly seems to me that CPQ in buying DEC is anticipating these types of squeezes in the future. (Since there have been plenty of them when shortages existed i nthe past and companies were put on allocation for chips.) Because otherwise its obvious that if CPQ wants to give their customer value they give their customer the K6 chip not this pathetic Braindead reincarnation of the PC Junior.

This is exactly what the Justice Department anti-trust division should be looking into right now. Is Intel compelling box manufacturers to take this chip as part of other PII deals?