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

To: kash johal who wrote (52685)	3/16/1999 2:43:00 PM
From: Tenchusatsu	Respond to of 1577883

<And KIII's are selling very well and maintaining prices - unfortunately our AMD friends can't manufacture enough of them. In fact KIII's are at a premium over a 400Mhz PII.> I guess we can argue over and over again on how to translate the pricing. In this case, however, I think things are pretty clear: 1) There is an enormous supply of 400 MHz Pentium II CPUs, compared to a trickle of 400 MHz K6-III CPUs. Low supply of K6-III leads to higher prices. High supply of Pentium II leads to lower prices. 2) Intel is transitioning the 400 MHz Pentium II from the high-end to the mainsteam in order to make way for the Pentium III. As for Celeron vs. K6-2, I really don't think it's a "brand" preference. The two CPUs are pretty much equal in terms of price, but in my humble observations from catalogs and from retail shops, OEMs continue to use the K6-2 in the lowest and cheapest computers while using the Celeron in more expensive computers. Why? It's that market segmentation thingy again. AMD is synonymous with low prices, while Intel is synonymous with premium prices. Sell AMD systems at a lower margin, and recoup the losses with higher margins off the Intel brand name. As for Cyrix, I think as of now they're a little short of the sweet spot to even make a dent in this market. Tenchusatsu