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

To: Pravin Kamdar who wrote (46515)	1/18/1999 1:49:00 PM
From: Scumbria	Read Replies (1) \| Respond to of 1572574

Pravin, Putting pressure on Intel may not be AMD's best business plan. Do they have any choice? Until recently, nobody would buy AMD without a 25% discount. Maybe that has changed. Scumbria

To: Pravin Kamdar who wrote (46515)	1/18/1999 2:16:00 PM
From: RDM	Read Replies (2) \| Respond to of 1572574

There is a fixed pot of computing dollars. The K7 competes for those dollars directly against Intel processors such as the XEON and Pentium III. If AMD produces processors that are lower throughput than Intel then it possible for Intel to price bomb the lower speed processors to some extent without interfering with their revenue that seems to come primarily from the higher speed processors. The K7 should outperform all Intel processors if they are able to match the Intel clock speeds. If AMD can produce the K7 with higher performance than Intel then AMD will get the same or higher prices than Intel does for their processors and the AMD processors ASP will soar. AMD is not producing lower end chips by choice, but rather they are the only competitive processors that they can make presently.