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To: Tenchusatsu who wrote (79266)	4/15/1999 2:49:00 PM
From: Scumbria	Respond to of 186894

Ten, Scumbria, if your prediction comes true, and $299 PC's start to dominate the market, who is going to be positioned for this shift? AMD who lost a ton of money on K6-2 and is now putting their hopes onto the high-end K7? Cyrix who's pretty much a no-show? Or Intel, who's only starting the low-end assault with the new Whitney integrated chipset, and will continue with Timna and its follow-ons? Cyrix is clearly in the best position because they want it to happen, and have planned for it. Intel has the ability to play there, but only reluctantly. AMD will have to team up with a vendor to make sure they have a competitive integrated chipset available for their product line. Scumbria

To: Tenchusatsu who wrote (79266)	4/15/1999 3:37:00 PM
From: Michael Bakunin	Read Replies (3) \| Respond to of 186894

I read that Intel was extremely leery of breaking out profits by segment on the conference call. That would tend to indicate that they are making all their money on the high end, and nothing on the low end. If K7 cuts Xeon margins, and Celeron cannibalizes P3 sales, I would expect Intel's income statements to begin resembling AMD's, and vice versa, compared with each company's last report. -mb

To: Tenchusatsu who wrote (79266)	4/15/1999 3:39:00 PM
From: Paul Jamerson	Read Replies (3) \| Respond to of 186894

>> Scumbria, if your prediction comes true, and $299 PC's start to >> dominate the market, who is going to be positioned for this shift? My opinion is the $299 PC will not dominate the market. But the market is moving away from the most expensive PCs. This has happened in the consumer market and is beginning to occur in the business market. My wife is CFO at a company which is presently looking at upgrading their PCs. In the past the discussion was alway to purchase the high end PCs to extend the life of the product. The strategy for this next round of purchases would be about 50% lower end, 20% mid-range, 30% very high end. Purchase will in the range of thousands of PCs. If all other companies take this approach, it will be bad for both AMD and Intel unless the volume increases.