rec.autos.simulators

Intel and Advanced Micro Devices both cut prices on their PC chips by as much as 24 percent
on Monday, as the two firms continue to slug it out for market share at the low end of the PC
market. The price cuts will help keep a fresh supply of low-cost PCs on tap. Intel cut prices
on its Celeron line of processors, which are targeted at what Intel calls the basic PC
segment, by between 16 percent and 24 percent. Only one of Intel's Celeron processors--the
400-MHz version released last month--is now priced above $100.

The price of the 400-MHz Celeron fell 16 percent, from $158 to $133; the 366-MHz version
dropped 24 percent, from $123 to $93; while the 333-MHz Celeron fell 19 percent, from $90 to
$73, Intel said. All prices are for 1000-unit quantities. AMD responded later on Monday by
cutting prices on its own K6-2 processors by between 11 percent and 24 percent. "Intel
accelerated its price cut and we had to follow along," AMD spokesperson Scott Allen said.

AMD's 400-MHz K6-2 dropped 15 percent, from $157 to $134. The 366-MHz version dropped 24
percent, from $122 to $93. Among the lower-speed grades, AMD's 333-MHz chip is now priced at
$72, down 14 percent from $84; while the 300-MHz K6-2 sells for $62, down 15 percent from
$73. AMD in the past year has successfully dented Intel's lion's share of the PC chip market
as it scored design wins with key PC manufacturers, Intel officials have acknowledged. Intel
has since vowed to take aggressive steps to regain its market share.

Despite the gains it has made, AMD last week warned of a possible loss this quarter--in part,
it said, because the expected price cuts could bring down its average selling prices.

        Well as a stock holder all I have to say is BULLSHIT!!!!!
The reason AMD can't make a profit is because they do not deliver what
they promise. Where the hell is Sharptooth??? This chip was supposed to
provide p2 performance on non-super7 boards and be completely compatible
with the major socket 7 chipsets. All by q4 '98. There is an entire
segment that would rather not chuck their AT case, their socket 7 board,
and their memory.
        I'd have sold it the 13th of last month, but it's dropped 30% in the
past 2 weeks and I cant take that kind of loss. Idiots. If It will just
get back to $20.00 I'll break even.
        I can't wait to roll it over to Micron.....

Failure to deliver in a timely manner is indeed AMD's biggest problem (although
Intel has the same problem).  However, neither of these manufacturers care
one bit about upgraders.  They're after the low end new pc market.

Betting the farm on AMD has been a bad bet for a long time.  They'll
eventually either throw in the towel (give up) or be acquired by someone
with the capital to play the game a bit more seriously.

Heh.  You're a glutton for punishment.  Mircon isn't in much better shape.
They are in direct competition with Asian memory importers who have newer
fab plants and lower labor costs.  I'll let you do the math.  The only
way they've stayed in business THIS long is that they have been able to
throw money at Congress and have import duties placed on imported RAM.
When that no longer works, they're finished.

Cheers,

Chris
--
Christopher Mauritz

--

Specialty Tech - Mainboard's, CPU's, Memory and More...
Lake Forest, Calif (949) 951-7067
http://www.specialtytech.com

J. Hanson

--

Specialty Tech - Mainboard's, CPU's, Memory and More...
Lake Forest, Calif (949) 951-7067
http://www.specialtytech.com

Remember also that Micron have manufacturing outwith the U.S., in
Japan, S.E. Asia and Europe also through their acquisition of T.I.'s
memory plants and J/Vs. They are by no means down and out, but it's a
critical few months ahead.

Anyway, WAY off topic :-)

Cheers!
John