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

To: Scumbria who wrote (54731)	4/8/1999 12:43:00 AM
From: Fred Fahmy	Read Replies (2) \| Respond to of 1571613

Scumbria, <We are indeed grateful for the great benevolence of this mighty giant. Perhaps we should buy massively overpriced PIII processors to show our gratitude?> LOL...that made me laugh. Look, you might think PIII's are "massively overpriced" but the market won't. You need to face this reality. PIII is the next mainstream chip. If people want low end PC's (and I'm not talking strictly about CPU benchmarks) they will have to decide between Celerons and K6's. Those are the CPU's that generally go in systems with less RAM, less disk space, smaller monitors, less powerful graphics card, slower CD/DVD, etc. CPQ, DELL, Gateway, etc. are not gong to put a K anything in their higher end systems. Therefore, Intel can command a premium for chips that go into those systems. Of course you could customize your system around a Celeron or K6 and get better components, but that's not how the market generally sells PC's "off the shelf". If AMD comes out and prices K7 very aggressively, Intel will of course respond in kind and put the squeeze on AMD. However, if AMD prices competitively and is content with less share, they could actually sell K7 at a profit. Here are the choices: 1) more share x money lossing ASP's or 2) less share x profitable ASP's. So far, AMD has gone for number 1. Are they going to repeat this mistake with K7?? Why can't you understand that AMD is the one lowering ASP's for everyone. Why in the world do you expect INTC to allow a 25% differential to exist. FF