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

To: Tenchusatsu who wrote (56835)	4/30/1999 9:26:00 AM
From: Rob Young	Read Replies (2) \| Respond to of 1577030

Tench, <$400 is the selling price or $400 is the manufacturing cost? God, I hope that isn't the manufacturing cost!> Selling (my guess). I believe when it was announced the 21264 in .35 micron had one of the higher MPR based manufacturing costs at around $380 dollars, at the price range it translates into quite high prices at intro. The manufacturing cost of EV68 should be very reasonable due to size... Compaq says "1/5 cost", leave it up to the analysts to decide what that might be as far as price. <Intel will be selling Merceds at very high prices anyway, and Compaq can be selling the EV68 at high prices, too.> Well this is a rather simple one to refute. EV68 price will be less than EV67 and EV67 will be volume shipping soon. EV67 price is less than EV6. If EV68 price (on our most favorite slide of all) is on par with the price of a 21164 at 533 MHz then we know it is going to be fairly cheap. As I pointed out, DCGinc sells a box with that CPU for $1400. <It wouldn't be wise for Compaq to pull an AMD and low-ball the price of the EV68, unless they plan on making the Alpha 21264 a high volume desktop solution.> Why? If you wish to introduce new price performance levels, why should you charge a premium price for a CPU that is reasonably low-cost to manufacture? I think Compaq's strategy regarding the EV68 is pretty transparent. Otherwise, they wouldn't be making public statements trumpetting the manufacturing cost in comparison to Merced. < In other words, even if Compaq sells the EV68 at 1/5th the price, Intel won't have much of a reason to drop the price of the low-volume Merced> That is true. And from that here is the rub... EV68 workstations will be much cheaper than Merced workstations. How that plays out is hard to say. Seems the Linux crowd at a minimum would be much more interested in a EV68 workstation as many can't afford a $7000 to $10000 Merced workstation.