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

To: Scumbria who wrote (53958)	4/2/1999 2:29:00 PM
From: Tenchusatsu	Respond to of 1572033

<Do you also believe that K6 hasn't affected Intel's CPU pricing?> Pentium III and Xeon? Not really. Though I do see the Pentium II 400 MHz selling around $250 these days. I really don't believe that AMD can do the same things in the high-end space that they did in the retail segment. AMD will have a better chance low-balling prices for the business desktop segment than the high-end workstation and server segment. But even low-balling prices won't make much sense unless AMD can also provide the volume. Who cares if the K7 is half the price of a Pentium III if all AMD can do is crank out like 100,000 of them per quarter? Intel will be happy to supply the rest of the 19.9 million customers with high-priced Pentium III CPU's. So the "giant sucking sound" that you're envisioning for Intel's profits aren't going to happen unless AMD can produce the volumes. Once again, we are in a wait-and-see mode regarding AMD. Who knows? Perhaps they can indeed ramp up the Dresden Fab in a very short time. I'm not a manufacturing guy, so I'll just listen to the conventional wisdom which says that AMD has a history of manufacturing screw-ups. Tenchusatsu