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

To: Paul Engel who wrote (34776)	7/18/1998 9:35:00 PM
From: Elmer	Read Replies (1) \| Respond to of 1572946

Re: "Why does AMD keep lowering their K6-2 prices? If demand is going up, they should maintain their pricing - instead they keep losing more and more money. Can you explain this? " I'll take a wild stab at it. Because of the law of supply and demand, AMD must make the product more attractive to bring the 2 factors into balance. Whata ya think? EP

To: Paul Engel who wrote (34776)	7/19/1998 11:21:00 AM
From: Maxwell	Read Replies (1) \| Respond to of 1572946

Dr. Engel: <<Why does AMD keep lowering their K6-2 prices? If demand is going up, they should maintain their pricing - instead they keep losing more and more money.>> The price on the K6-2-300 hasn't changed for over a month. It is still roughly at $165 in Pricewatch for consumers. The price is much lowered than AMD introduction price. AMD opted to go for lower price to penetrate market share. Gaining acceptance of 3DNow! is crucial to make 3DNow! a standard. The strategy is working very well. In a month or two you will see more softwares, graphic drivers, DirectX 6.0 and OpenGL that take advantage of 3DNow! Talk all you want. You will see the impact of 3DNow! by Christmas. Maxwell