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

To: TGPTNDR who wrote (59192)	5/21/1999 8:26:00 PM
From: Tenchusatsu	Read Replies (2) \| Respond to of 1572362

<The money won't start flowing 'till we get the 8, 16, 32, and 64 SMP designs in production.> Not really. Even with all of the processors required for the 4-way, 8-way, and higher SMP servers, the fact is this market is very low volume compared to desktops, workstations, and even single or dual-processor servers. Of course, the high margins are still very attractive, even with the low volumes. Tenchusatsu

To: TGPTNDR who wrote (59192)	5/21/1999 8:35:00 PM
From: RDM	Respond to of 1572362

<The money won't start flowing 'till we get the 8, 16, 32, and 64 SMP designs in production:> Given that this is an approximate profile of an Intel Quarter: Quant ASP Revenue GM(est) Manf. Cost Celeron 9,770,000 $90 $879,300,000 30% $615,510,000 PII/PIII 13,000,000 $300 $3,900,000,000 60% $1,560,000,000 Xeon 1,100,000 $1,000 $1,100,000,000 85% $165,000,000 $5,879,300,000 $2,340,510,000 It seems apparent that $3.9B>1.1B and that the workstation market is bigger both in units and revenue than the server market. The server market has less that half the gross profit($1.0B vs $2.4B) of workstation market. AMD has to transcend from the Celeron the the PIII market to make money. Celerons create only $.2B gross profit vs the $2.4B of PIII. If K7 is faster in every sense than PIII they will come!