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

To: Brian Hutcheson who wrote (42329)	11/28/1998 11:49:00 AM
From: Jim McMannis	Read Replies (2) \| Respond to of 1572830

At 184mm2 and a yield of 50% with a $2000/wafer cost the K7 should cost $32 plus packaging. Say $30 to be very conservative. That's $62... Even at $75 a chip and Katmai prices the K7 will be very profitable. Several things concern me though... The first of which is AMDs last in-house chip (K5) was late and a flop. Have they learned from their mistakes. The design suggests they have...but a lot of things have to come together. Second thing is the chipset. AMD would be a moron if they don't come out with their own chipset. VIA and Ali are good at copying chipsets but when they have to develop their own, it takes a few revisions before they can get it right. Thirdly, as well as AMD has promoted 3DNOW! It's not near enough. they have 3 months max to really promote it...the marketing clout of Intels Katmai will start to really kick in and I expect they haven't been sitting on their hands. So maybe I'm paranoid..but that tactic worked well for another company we know about... Jim