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

To: Elmer who wrote (58837)	5/19/1999 6:39:00 PM
From: kash johal	Read Replies (2) \| Respond to of 1571815

Elmer, Trouble for Intel IMHO: Looks like the retail world loves Celeron and PIII sucks in market share. Quite shocking considering all the PIII ads and hoopla and relatively low PIII pricing IMHO: Retail PC Unit Sales Rise 21% in April; Revenue, Prices Fall Reston, Virginia, May 19 (Bloomberg) -- Unit sales of personal computers through retail and mail order rose 21 percent in April, though revenue slipped as prices fell and sales of low- cost PCs with Intel Corp.'s Celeron chip surged, a report said. Revenue fell 2.2 percent in April from a year earlier, and the average sales price fell 19 percent to $928, according to PC Data Corp. Sales of computers costing less than $1,000 almost doubled, making up 71 percent of all retail sales. The report suggests that PC makers will face increased profit pressure as buyers flock to cheaper systems instead of opting for PCs with all the bells and whistles. Already, investors in companies like Dell Computer Corp. are concerned that falling prices will curb revenue and earnings growth. ''All the growth in the market was in sub-$1,000 PCs,'' said analyst Stephen Baker of PC Data, a market researcher in Reston, Virginia. ''The average selling price is down a lot more than expected.'' Sales of systems using Intel's Celeron processor, which is its least expensive chip, surged in April as more buyers chose cheap systems over advanced products based on Intel's Pentium III. Celeron-based PCs accounted for 28.2 percent of systems sold in April, up from 19.2 percent in March. Pentium III-based systems accounted for 7.8 percent of units sold, up from 6.7 percent in March. Analysts have said that if the number of Celeron chips sold is higher than expected and sales of Pentium III are lower, Intel's earnings in the second quarter could suffer. Intel, AMD Intel's share of the retail market climbed to 53.2 percent from 52.5 percent in March. Still, that's well below its 72 percent market share in April 1998. Advanced Micro Devices Inc.'s market share dipped slightly to 40.5 percent from 41.4 percent in March. AMD's K6-2 chip was the single best-selling processor in the retail market, capturing 40 percent of all sales, PC Data said.