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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Michael Bakunin who wrote (55199)	4/8/1999 1:02:00 PM
From: gbh	Read Replies (5) \| Respond to of 132070

Of course not. Margins suck at the low end, relatively. But since INTC sells mostly into the corporate space it is temporarily sacrificing margins while AMD comes to its senses (which should be soon now), and realizes they will never make money at the low-end. INTC can at least make a profit there due to vastly superior processes which can yield higher speed Celeron in volume. AMD will come to realize that losing money on each CPU they sell can't last forever. These aren't books, and they aren't AMZN. They with have to live with selling fewer K6-3 and K7 (much larger die) CPU's at higher margins. INTC will let this happen, in my opinion, and give AMD a glimmer of hope with some miniscule earnings, but much less market share. INTC will then obsolete all low speed (300 to 400) Celeron stuff, and proliferate only higher speed Celeron at the low end (450 to 600). These they can yield nicely, and charge $130 to $200 for. What does this mean? It means that you better get for sub $600 machine soon, cause that market won't be with us long, IMO. Gary