Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Elmer who wrote (41300)	11/12/1998 6:53:00 AM
From: Maxwell	Respond to of 1571591

Elmer: << It is on track to do 2x the K6 volume in the low end. It is lower cost than the K6 and higher margin.>> Go do your math. Estimated ASP for CeleronA =$85 vs. AMD K6-2 ASP=$100 (for all speed grade from 266-400). Estimated cost for Celeron=$64 vs K6-2 cost=$45. Tire of hearing your wild ass claim again. Maxwell

To: Elmer who wrote (41300)	11/12/1998 10:11:00 AM
From: Bill Jackson	Read Replies (1) \| Respond to of 1571591

Elmer, true it has some adherents, but the success of the K6 is due to Celeron avoidance. Here the K6 is about 20% cheaper than the Celeron and the K6 is cheaper to make than the celeron and so both might tend to have the same gross profit margin to Intel/AMD and the boards that make the systems up are somewhat cheaper and so are the cases. This means that the screwdriver shop who puts together 2 systems that are the same in all respects but the board, case and CPU will see about $150 difference in costs(Celeron higher) and this will end up as a $200 retail difference. In the case of, say, IBM, this will show up as a Celeron cost $300-400 above the comparable screwdriver shop system based on K6 due to IBM other costs such as distribution, engineering overhead etc. The K6 is expanding rapidly in the screwdriver shops as it allows them to make money and the AMD promotional bric-a-brac sells the public. Bill