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

To: Tenchusatsu who wrote (44545)	1/1/1999 5:32:00 PM
From: Maxwell	Read Replies (3) \| Respond to of 1572004

Tenchusatsu: <<If you still don't believe me, witness the ratio of Pentium II ads to Celeron ads in the media (TV, magazines, etc.). It's about 9-to-1 in favor of Pentium II.>> It really doesn't matter how many adds Intel is advertising. The question is how much of manufacturing capacity has Intel shifted from PII to Celeron. I am sure Intel has utilized more fab capacity to build the Celeron than the PII. Don't tell me that if Intel ships 8M CeleronA then Intel will ship PII of 9X CeleronA. The real reason that there is a shortage of PII because Intel has shifted significant portion of their manufacturing to CeleronA. What Intel has done is to accelerate the demand of inexpensive PCs. As consumers become more aware of PCs and realizing that the PCs will be obsolete in 6 months no one will be willing to buy an expensive computer. Maxwell

To: Tenchusatsu who wrote (44545)	1/2/1999 11:36:00 AM
From: Ali Chen	Read Replies (1) \| Respond to of 1572004

Tench, <If you still don't believe me, witness the ratio of Pentium II ads to Celeron ads in the media (TV, magazines, etc.). It's about 9-to-1 in favor of Pentium II.> I don't believe you. I don't recall 9:1 Intel advertising. What I do recall is a deceptive combo "Powered by Pentium-II-Celeron processor" used in all local computer superstores. You probably have learned too much of fast reading technique and read only the first part of ads skipping the end... What I rather recall is a 2:1 advertising in favor of K6-systems in local newspapers. <Now why would Intel advertise a Pentium II upgrade for Homer's brain if they're going to discontinue it?> I don't know. Maybe because the current Intel marketing has a Homer-grade brains? The SeleronA in Socket370 must be three times cheaper to make than the Slot1-PII while the performance is even better. The only reason for continuing advertising could be a disbalance between Slot1 and s370 boards. You know, board makers are not too happy to completely re-tool their assembling lines every six month in favor of Intel's squirms to steer competition off road. Therefore there could be some oversupply of Slot1 boards. <Pentium II line is Intel's bread-n-butter, and that it's sold at margins that AMD would kill for,...> I would not be so sure about margins. As it was widely recognized (by serious investors), Intel has a concealed program for labor compensation in the form of employee stock options, and has to buy back their shares at rate of $1-$2B/Q to prevent stock dilution. If you forgot all previous discussions on the subject, I can remind you that the trick is that these buy-backs are not accounted as operating expenses in financial books while in fact these are the deferred labor compensation expenses. Therefore the reported profit become highly inflated while in reality it may drop to NEGATIVE values in some quarters. If you prefer to wear blunders on this subject, it is your problem. But some people call this situation a card-house.