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

To: Monica Detwiler who wrote (56016)	4/21/1999 11:24:00 PM
From: Cirruslvr	Respond to of 1570901

Monica - RE: "If MegaHERTZ sells, how does AMD expect to sell 400 MHz K6-III CPUS for $250 when they are also selling 400 MHz K6-2 devices for $96 and 450 MHz K6-2 devices for $135? This seems to be a box that AMD can't get out of. Or "In To" - as the "PC case" may be. Any thoughts?" Mainly by riding Intel's marketing coattails. AMD doesn't have $300 million to differentiate between the K6-III and K6-2, but Intel does to differentiate between the PII and PIII. Since the K6-III's name looks like the PIII name and becuse it is faster than the PIII in business apps, it will be pushed as an alternate to the PIII. However, salespeople at stores have an influence on customers and the salespeople are taught which processors compete with which. You also ask how they plan to sell a lower MHz K6-III vs. a higher MHz K6-2. Well, again they are riding Intel's back. Intel will have a 466MHz Celeron out next week and that has a higher MHz than the slowest PIII. But Intel positions the Celeron as the low end and OEMs better outfit PIII systems. AMD basically does the same thing. I hope this shined some light on your question.

To: Monica Detwiler who wrote (56016)	4/21/1999 11:35:00 PM
From: Jim McMannis	Read Replies (1) \| Respond to of 1570901

Monica, RE:"Jim - If MegaHERTZ sells, how does AMD expect to sell 400 MHz K6-III CPUS for $250 when they are also selling 400 MHz K6-2 devices for $96 and 450 MHz K6-2 devices for $135? This seems to be a box that AMD can't get out of. Or "In To" - as the "PC case" may be. Any thoughts? Monica"... There is a problem there. Like Shawn said, they will try to overcome it with marketing. The better solution is to move the K6-III to 500 and more. Something they have been working on with some success. The K7 should somewhat moot the whole thing. Jim