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To: Kevin K. Spurway who wrote (4751)3/5/1998 2:36:00 PM
From: Joey Smith  Respond to of 6843
 
Kevin, re:If I were in Grove's position, I might have made the same price
cuts. I don't know where the balance is between the costs (lost
profits) of cutting prices and the benefit of retarding the
competition. Grove has access to a lot more information on that
than I do. All I'm arguing is that it's not Grove's or Intel's intent to
put AMD, Cyrix, or anyone else out of business. The intent is to
keep the competition in the kind of position that it was in about
two years ago.

Amen, Brother!

joey



To: Kevin K. Spurway who wrote (4751)3/5/1998 8:14:00 PM
From: Adrian Wu  Respond to of 6843
 
Re: Intel price cut.

Intel is at a disadvantage. By turning away from Socket 7, they move on to a more expensive package: The module, the slot, the chipsets... The cost for the PII is simply higher. The Celery or whatever just goes to show that by cutting cost, the performance becomes inferior to the K6. People may want sub-$1000 computer, but these people are not stupid; they want the fastest machine $1000 (or $799) will buy. The Celery is not the answer. Intel may have been better off extending the Pentium to higher clock speeds to compete with AMD in the low cost space. Unfortunately, they have stated too publically that they are going to kill socket 7 (and hopefully AMD and Cyrix) and cannot go back on their words, hence the Celery. The PII was designed to be a high cost, high performance, high margin processor.