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

To: Scumbria who wrote (53950)	4/2/1999 1:25:00 PM
From: Tenchusatsu	Read Replies (2) \| Respond to of 1571967

<Regardless of how many K7's AMD can produce, K7 will set the high end pricing. This will likely drag Intel's ASP's down significantly.> You must be joking. You seriously believe this? Scumbria, until the K7 can enter the mainstream, like the business desktop segment, I really don't believe the K7 will have any effect on Intel's high-end pricing scheme. The server market has a totally different pricing structure, which allowed even Pentium Pro processors running at 200 MHz to sell for more than Pentium II 333 MHz back in pre-Xeon days. Even if AMD low-balls the price of the server version of K7, it's unlikely that Intel will drop Xeon prices at all, since the CPU makes up but a small fraction of the total price of the server, both the box and the administration. Even if the K7's performance kicks the Xeon's butt five ways to Sunday, it's not going to have any effect on Intel's prices (Xeon, Pentium III, or otherwise) until AMD can put some volume into K7 manufacturing. By the time that happens, Merced should be out in the market to displace Xeon anyway. Tenchusatsu