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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: kash johal who wrote (74883)	2/28/1999 11:41:00 PM
From: Tenchusatsu	Read Replies (1) \| Respond to of 186894

<The way that Intel wins is by introducing faster processors than AMD.> Not necessarily. The way that Intel wins is by introducing real technological solutions which allow costs to go down while keeping or increasing performance levels. One such example of this is the addition of the L2 cache to Celeron. Before, Celeron w/out cache was just a defeatured Pentium II, released in response to the K6 and the K6-2. To put it mildly, that Celeron wasn't received warmly. But then Intel released the Celeron w/ cache one quarter early (originally scheduled for Q4 98, but then got pulled into Q3). This was the first x86 CPU to feature on-die L2 cache, and that helped Intel put the hurt on AMD and its dreams of $100 ASP. That's an example of a real technological solution. <And the arrogant assumption that business customers will not purchase AMD is idiotic. In my experience business customer typically are willing to pay more to get the best in performance and are fairly agnostic on who they go with. In a few months that may well be an AMD chip.> You missed the point I made before. Businesses see no real reason to go with AMD at the moment. The fastest K6-III offers little advantage over the fastest Pentium III. And the Super 7 platform still has a reputation for being rather unstable. It's not that businesses have a love-Intel-hate-AMD-just-for-the-heck-of-it attitude. It's because AMD lacks a real technological solution for the higher-end business market, a real differentiator that convinces IT departments to dump good ole Intel and go with new AMD. The K7 promises to be the first technological solution, but then again, we all know what the promise-to-reality ratio is from AMD. Tenchusatsu