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

To: Jim McMannis who wrote (36352)	8/25/1998 11:44:00 PM
From: Dale J.	Read Replies (1) \| Respond to of 1574098

Jim, 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. Well maybe for now, but I read an article that said Intel will be able to manufacture Celeron at a lower cost in the future. Don't ask me about the details because I don't recall them. Intel will be the low cost producer because they have the huge volume, better yields that much I know. In addition they have a better process (Yousef said so.) 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. No way. It is the Celeron that will stymie AMD's growing market share in the low end. The new Celeron is AMD's nightmare come true. As far as cannibalizing the PII there is a element of truth to that, but overall the new Celerons will add to Intel's bottom line. Remember many OEM's ignored the original Celeron (Gateway) or only gave a lukewarm response (IBM, CPQ and HP). The new Celeron will be pushed by every major OEM. Dale