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

To: FJB who wrote (36770)	9/7/1998 12:35:00 AM
From: Elmer	Respond to of 1570940

Re: ". This is not complicated stuff. I feel rather poorly about "talking down" to you on this subject, but it is extremely simple yet overlooked." Don't worry about talking down to me Bob. I'm not sensitive. But lacking inside information, it's hard to make the case that AMD could be the low cost producer when they keep posting huge losses. It's also hard to argue that Intel isn't the low cost producer when they keep posting huge profits. This isn't brain surgery. It should be obvious. EP

To: FJB who wrote (36770)	9/7/1998 10:01:00 AM
From: Maxwell	Read Replies (4) \| Respond to of 1570940

Intel vs. AMD Costs: I don't know why is everyone argues so much about the cost of AMD K6-2 versus the Intel PII/CeleronA. According to Microprocessor Report (their staffs know a lot more than anyone on this thread) the cost of producing the PII is like $68, CeleronA $63, and the K6-2 is around $38. The reason Intel is so profitable is that they get better ASP (around $206 vs $100 for AMD) and sells 20M+ of these things. Market Survey: Anyway I went to Best Buy yesterday. During my 45 minutes stay there I saw 3 Acer K6-2-350MHz sold, 1 IBM K6-2-266MHz sold, 1 CTX K6-2-300MHz sold, 1 HP K6-2-300MHz sold and 0 Intel computer sold. There were much interests in the Intel computers but when it comes to MHz/$ people decide to buy the K6-2. Furthermore I think the sales people at Best Buy had some influence over the customers decision. They keep saying that "the K6-2-300 3D will run as fast as PII-400 in 3D softwares written with 3DNow!". Whatever it meant the "3D" word was the magic word. What I noticed was that most of the first time buyers would buy the K6-2 for their children for schooling. These buyers don't seem too sway about Intel Inside. They are more concern with their budget. So in that sense AMD is doing very well down at the retail level. Can't wait till Compaq is announcing the K6-2-400MHz at $1500 level. This will put a big damper on the sales of PII-400. Maxwell