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: DRBES who wrote (49098)	2/9/1999 7:42:00 PM
From: Tenchusatsu	Read Replies (1) \| Respond to of 1571798

<The current version of the cELERON is within 87% to 92% (depending on which set of benchmarks are used) of the performance of the pII. Yet it is priced at a fraction of pII pricing. It also costs more to produce than the pII.> First of all, if I'm looking at cars and I pay four times the price of a Ford Taurus in order to get a BMW 700-series, should I expect four times the performance or four times the satisfaction? Second, where in the world do you get the notion that the Celeron costs more to produce than the Pentium II? Sure, the Celeron's die size is larger, but it doesn't have the SRAM chips nor the Nintendo cartridge of the Pentium II. The new Socket 370 Celeron doesn't even have a daughtercard anymore, and that is estimated to shave $10 more dollars from the cost compared to the Slot 1 Celeron. If you think that die size is the only factor in cost, you make the same mistake that too many other AMD supporters make. And third, you are assuming that if AMD loses money on the K6-2, Intel must be losing money on the Celeron. Try, try again. Tenchusatsu

To: DRBES who wrote (49098)	2/9/1999 7:43:00 PM
From: Paul Engel	Read Replies (1) \| Respond to of 1571798

DBDRedersc - Re: "Their intent is obvious, they are trying to run their competition out of business. " Sounds like good, aggressive business practices to me. Why is AMD allowed to sell K6-2's at a loss if Intel can't sell Celerons at a loss, which they are NOT doing. I will "stay tuned" for your answer. Paul

To: DRBES who wrote (49098)	2/9/1999 7:44:00 PM
From: Elmer	Read Replies (1) \| Respond to of 1571798

Re: "I really hope that four weeks from today, when Atiq Raza appears and testifies in front of the FTC, that the issue of predatory pricing is raised. The current version of the cELERON is within 87% to 92% (depending on which set of benchmarks are used) of the performance of the pII. Yet it is priced at a fraction of pII pricing. It also costs more to produce than the pII. If iNTEL ran the rest of its operations with the margins (negative) that it suffers with the cELERON chips it would report losses that would dwarf those of AMD. iNTEL finances its unprofitable cELERON operations with the profits from other products. Their intent is obvious, they are trying to run their competition out of business. This is criminal activity albeit difficult to prove conclusively." Where is your data showing that a PII is less expensive to manufacture? I think that a good case can be made to suggest that the added cartridge and multiple test steps plus lower yields make the PII manufacturing cost higher than might be thought. The larger die size of the Celeron is somewhat offset by cheaper packaging and test. As for your claim the Celeron is unprofitable, I suggest both you and Scumbria hold your breath until you turn blue and pass out. That's what some children do when they can't get their way. EP