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

To: Jim McMannis who wrote (36395)	8/27/1998 6:24:00 PM
From: Tenchusatsu	Read Replies (2) \| Respond to of 1571245

Jim, Since you are familiar with Intel you should be familiar with that. I don't see the K6-2-350 selling at 317 for long. $220 is a nice level for September. At $35 a pop that's an 84% profit margin. Hey 'dems Intel margins!" Since Intel's margins are about 49%, and it can be assumed that Intel has pretty high yields (high 90 percent range?), I find it hard to believe that AMD can get an 84% profit margin from the K6-2 350. Something's got to be wrong with your estimations. $35 a pop is on the order of popcorn parts, and that's assuming that yields are close to perfect. Considering that AMD just released their K6-2 350 MHz, I don't think yields are going to be that great, nor do I believe that the cost per part is going to be $35 even if yields were 100%. Couple that with the fact that the Mendocino Celeron 333 is dangerously close in performance to the K6-2 350 MHz, and there's a real possibility that the AMD K6-2 350 will drop well below the $200 mark in the near future. Intel might be cannibalizing the mid-range Pentium II's, but AMD's K6-2 is going to be slaughtered. Oh well, there's always Sharptooth, as well as that mysterious K7. Tenchusatsu Be kind, it's my first post