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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Michael Bakunin who wrote (30300)	7/28/1998 11:52:00 AM
From: Knighty Tin	Respond to of 132070

Mike, Intel tried a trick with the Celery chip because they didn't want cheap pcs to sell. So, they made a lousy chip, and instead of everyone running back to overpriced chips, they simply went to Cyrix (NSM) and AMD for better-performing cheapos. Now, Intel has to scramble to prove they can make a decent cheap chip. But you have hit it square between the eyes. If the Celery crunches as well as the PII, why pay up for the PII? And if it doesn't, why buy the Celery? So, they either end up with little share of the fastest growing part of the market or they cannibalize their fat margin product. Intel is playing under the old rules where folks were willing to pay extra for the Cadillac brand name even if they got Chevy engines. Some of these folks still exist, but a smarter group of buyers dominates the market now. MB