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

To: Process Boy who wrote (58872)	5/20/1999 12:23:00 AM
From: Mani1	Respond to of 1583396

PB, Re <<If I were an AMDer, I would not be all fired up about reports of the demise of market segmentation, considering what they want to price the K7 at.>> "Market segmentation" by Intel is really selling the same product at two different prices to two different customers. It is done all the time in the airline business. I don't want to argue about how much premium if any PII should carry over the Celeron, but you get my point. K7 should carry substantial premium over K62 based on performance not marketing. AMD does not have the marketing power Intel has. As an AMD stockholder, I consider it good if Intel's segmentation strategy is partially failing. Selling Celeron at substantially lower margins to compete with K62 is bad news for AMD. If the "segmentation strategy" is not successful and low margins Celerons cannibalize the PIII's, maybe Intel will be less aggressive with the Celeron pricing and that is good news for AMD. Mani