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

To: Brian Hutcheson who wrote (38605)	10/7/1998 11:40:00 AM
From: Maxwell	Read Replies (1) \| Respond to of 1577332

Brian: <<did anyone post the Celeron A die size that jerry quoted? According to the CC it is 150 mm or roughly twice the die size of K6-2 that makes it very difficult for Intel to match AMD's prices on the low end . Correct me if I am wrong (as I was on the ASPs) but isn't the K6-3 cost around $35 ,which would make Celeron approx $70 .>> Die size of K6-2 is 79mm^2 and CeleronA is 154mm^2. According to uP reports the K6-2 costs about $35 and CeleronA about $68 to manufacture. Did you note that the gross margin improves from 12% to 39% as AMD migrates toward CPU? It says that CPU is highly profitable. The question of concerns is that will AMD be demand limited? Well according to CC they said 4.5M K6-2 is in the bag. Apparently there is enough OEMs to absorb this amount in Q4. I still think that if AMD can deliver a substantiable amount of K6-2-400MHz the demand will outstrip supply. The notebook market is still lucrative. Did you see AMD today? It got wacked big time. I wonder what would it be had AMD posted a loss? Perhaps it might go up. Anyway, we'll have to let all the sellers sell before we see the buyers come in. AMD is in a good position to compete now that they have all their OEMs lined up and shipping the 400MHz. Maxwell