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To: Petz who wrote (5743)	4/23/1998 6:10:00 PM
From: Bill Jackson	Read Replies (1) \| Respond to of 6843

John, Dell is a bit of a special case. The build to order scheme they run is backed up by a just in time very fast response time chain of manufacturers. I suspect their entire pipeline is at most one month deep(plus freight delay). IE the stuff they power up today was made a month ago max. I do not know the % of case and other stuff made locally, but that helps as it cuts the freight delay which can be 1 month from the Orient(unless you use evergreen last on first off=10 days to LA from Hong Kong. They are like Walmart in that they are very tight with suppliers and give them daily forward projections for all parts. This way they can be on top of a downturn, and reduce parts and people so they still make only what they sell at a profit. They could probably reduce sales by 30-5-% and still make money. Not so Gateway. 2-3 months is more like it and unless they guessed right a month or two ago the stuff is piling up as we speak in the gateway warehouses, where it dies fast. Anyone know any facts about Gateway. Compaq has the same problem and could well have far too many parts in stock. Same with IBM and all the others. I think Dell will take a big stock price hit as sales fall, but I think it will stay profitable. However the stock will be humbled by the lower multiple. Dell is an anticipation stock, cut that and it goes into free fall. And then again my analysis might be wrong. Bill

To: Petz who wrote (5743)	4/23/1998 9:22:00 PM
From: Dave Parr	Read Replies (1) \| Respond to of 6843

Advanced Micro Devices Cuts K6 Prices (04/23/98; 10:23 a.m. ET) By Mark Hachman, Electronic Buyers' News Shortly after Intel announced its own April 15 price reductions, Advanced Micro Devices has returned fire by cutting prices on its own K6 microprocessor. Perhaps more important, a spokesman for AMD (company profile), in Sunnyvale, Calif., has indicated the unannounced prices of the K6 3D will be priced competitively against the Pentium II. "Essentially, the AMD K6 3D will offer performance comparable to Intel's Pentium II processor, but we'll give away 3-D [acceleration] for free," he said. In a recent conference call with analysts, AMD chairman and CEO W.J. Sanders reported the K6 3D represented "uncharted waters," where AMD would offer a technology introduction before Intel. During the call, AMD reported the 300-MHz and 266-MHz K6 processors will be priced at $246 and $156, respectively. The spokesman added that the 233-MHz chip will sell for $100, the 200-MHz K6 will drop to $80, and the 166-MHz K6 has been discontinued. All prices are for units in lots of 1,000 pieces. AMD has pledged to maintain at least a 25 percent price discount compared with an Intel processor performing at an equivalent level. Intel's own 266-MHz "Covington" Celeron microprocessor without Level 2 cache is priced at $155, similar to the $156 offered by AMD for its own 266-MHz K6. But Intel's 266-MHz Pentium II with cache is priced at $246, a greater than 25 percent difference, the spokesman said. The marquee enhancement of the K6 3D is a set of specialized instructions that accelerate 3-D geometry and lighting calculations. Although other reports have indicated the K6 3D will be introduced at 200, 250, and 300 MHz, internal sources within AMD have indicated these performance estimates are likely too conservative. Although AMD has publicly said the K6 3D will be introduced at 300 MHz, AMD sources reported the K6 3D will probably also be introduced also at 266 and 333 MHz, with faster speed grades slated for the future. "Classic" K6s will be produced at 350 and 400 MHz in the third and fourth quarters, Sanders previously told analysts on the conference call. The AMD spokesman declined to comment on the K6 3D speed grades. "But, remember we're yielding much faster than we originally thought," he added. love the last line! Dave techweb.com