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

To: Elmer who wrote (33504)	6/23/1998 5:22:00 PM
From: Petz	Read Replies (2) \| Respond to of 1573065

RE:"If they sell a half million of these still-overpriced chips, at an average $500 additional profit above the standard P2-400, they will still make 250,000,000 on them." Where do you get only $500? With an ASP of $3690 I see it as nearly $3000 additional profit. The $3690 figure is for a 450MHz/2Mcache version which is three months away. The 400 MHz/512KB Xeon is $825, only $83 more than the $742 price of the Pentium II-400 at thechipmerchant.com. Even if they are marking it up 10%, Intel's only getting an extra $155 for each of the most common Xeon's. If the 450 MHz/2MB cache Xeon's are ever produced, I wouldn't expect many people to buy them at a $3000 markup. zdnet.com Xeon versions Old price New Price 400MHz/512KB..$1,125....$825 400MHz/1MB.....$2,835..$1,980 450MHz/512KB..$1,060......$825 450MHz/1MB.....$2,675....1,980