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

To: Daniel Shaffer who wrote (54185)	4/4/1999 11:10:00 PM
From: Elmer	Read Replies (1) \| Respond to of 1580448

Daniel, I don't know if your post was intended to spark conversation but it was certainly full of misinformation. Re: "Once there are parallel processor motherboards on the market for the K6-III, we may see some high end action for the simple reason that cost savings over comparable (even slightly faster) Pentium chips will be multiplied. For example, a server with 4 AMD K6-IIIs would be $880 cheaper to build than one with 500 Mhz Pentium IIIs." You will never see any parallel processor MBs for any AMD K6x product because of the obsolete bus architecture of Socket7. It stinks for multiprocessor systems. AMD hasn't bothered trying because they know they wouldn't be able to find a customer stupid enough to buy one. Re: "Given Intel's high overhead costs, all of this price cutting is bound to hurt profits there as well." You are obviously ignorant of the subject otherwise you would know that Intel's costs are the lowest in the industry. Ignorance is cureable, stupidity is not. I don't think you are stupid. EP

To: Daniel Shaffer who wrote (54185)	4/4/1999 11:51:00 PM
From: Paul Engel	Read Replies (1) \| Respond to of 1580448

Daniel - Re: " the K6-III is a tremendous bargain. At 450 Mhz, it sells for $220 less than the 500 Mhz Pentium III and $20 less than the 450 Mhz Pentium II." Try and buy a 450 MHz K63 - vendors listed on pricewatch.com have been "taking orders" for a month and a half now - and still aren't shipping. Re: ""Regardless of its lack of strong floating-point performance, the K6-III is a tremendous bargain" It's a bargain because it's cheaper and not very fast at FPU operations. Re: "For example, a server with 4 AMD K6-IIIs would be $880 cheaper to build than one with 500 Mhz Pentium IIIs. " This is a great idea. Why don't YOU BUILD THEM. You'll get rich quick, won't you? Re: "Given Intel's high overhead costs, all of this price cutting is bound to hurt profits there as well." Intel's OVERHEAD costs are much lower than AMD's. First, Intel makes a lot more CPUS, chip sets, etc. than AMD (probably 5x the CPU units + 10x in Chip Sets) and can spread the overhead over the much larger unit volume. Second, Intel's cost of capital is nil - they are awash in cash and investments. AMD has BORROWED CASH - LONG TERM DEBT - in the bank and they are paying interest on this cash to the tune of $66.5 Million in 1998 - which was about $6 in interest per K6/K62 CPU shipped in 1998. Paul