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

To: Dale J. who wrote (36348)	8/25/1998 5:35:00 PM
From: Jim McMannis	Read Replies (2) \| Respond to of 1574042

Dale, RE:"No. The consumer doesn't even know what a die size is. The consumer knows Mhz and MB's. That's it, and Intel's low end 333mhz celeron will compete favorably with AMD's 333mhz." No, the average consumer doesn't know die size but Intel's bottom line will! Let me repeat. Celeron A die 154mm2 and AMD K6-2 is 79mm2. Even granting Intel better yields the K6-2 is much cheaper to make. So AMD lowers the price on the K6-2, still makes good profit and squeezes the margin right out of the Celeron A which, with it's equal or better performance, is cannibalizing the Pentium II. Granted, AMD needs the 350 now and the 400 in a couple months. I'll give you that. When the K6-2-350s and 400s are out they will be competeing against the Pentium IIs not the Celeron, based on "MHz". So what will Intel do? Raise the speed on the Celeron to cost effectively compete with the K6-2? OK...then what happens? The Celeron A further cannibalizes the Pentium II at 350 and 400. Any way you look at it, that small die size is an ace in the hole...baybee. Jim