Posted by
ryuzaki0
on from the stuff-to-read dept.
wopr writes "It's just a
rumor,
but
c't
is reporting that the PIII 600 will be released cheaper than AMD's K7 600. The article is in german, but the
babelfish
can take care of it. "
Also, it has to be noted that Intel provides more of a 'package' to it's OEMs...
Also, part of the package Intel has is long term contracts and marketing arrangements such as the Intel Inside campaign, which locks OEMs into using Intel chips in return for sponsored advertising.
This pretty much consigns AMD to the home/consumer and white box market. The major vendors such as Dell and Compaq probably couldn't used AMD chips in their "Business Desktops" without some serious renegotiation. --
Translation from babelfish
by
Anonymous Coward
·
· Score: 3
(I'll let you clean up the English)
Intel undercuts AMDs price
In view of the forthcoming launching of a vessel of AMDs flagship K7 " Athlon " accesses Intel to the extreme one: For the first time the processor giant undercuts the price of the directly comparable competition product of competitor AMD. The Pentium III with 600 mc/s, which Intel wants to throw two weeks before the AMD Premierenfeier in running, will be clearly cheaper after c't information than the fire-new 600-MHz-Athlon. Its price determined AMD to 699 US Dollar, while Intel had advised a OEM price of 823 US Dollar (with acceptance of 1000 pieces) until recently for the 600-MHz-P III. Still before start of sales of the Athlon Intel thereby seems to recognize its advance in performance. An outline of the bench mark results published so far brings c't in output 14/99 (starting from Monday at the kiosk).
Whether AMD can be pleased about this respect proof of the powerful competitor, is however questionable. The processor prozessorschmiede fights with high losses, all hopes rests with AMD
Yeah, but that's really hard to establish in this case. Take the Celeron example. They aren't selling them below cost, teechically. They're probably making a decent per-unit profit. But that doesn't take into account R&D. They'll still living off of the PPro R&D, and almost no research went into creating the Celeron (relative to other chips). A good portion of the cost of the chip is the research that went into it, and in this case, they might actually get away with "dumping" (I doubt it, though). You can't say, "Hey, it cost you more to develop that than you're selling it for!" because they might be able to milk it for another 5 years (PPro), though I doubt it. The only way they'd get caught for dumping is if they sold below the per-unit cost.
1. Intel makes a profit on all of their chips. With the possible exception of the bottom of the Celeron line, which may come in right at cost. So accusations of dumping are unlikely to fly in the courts.
2. If you really believed in competition, why would you announce that you are going to buy an Athlon "on principle"? If you said, "well, it costs more, but it performs better" then I could see that as supporting competition, but the nature of competition is to reward success to the best product on the market, and price will always be a factor in determining the 'best product'.
3. There is a lot of complaining about Intel 'announcing price cuts for an unreleased product', but this is just a rumor, not an announcement. However, AMD *has* announced prices for chips unlikely to make it to market in the next several months, so that customers could see how much cheaper a -2 month old 550 MHz Athlon is in comparison to a current PIII-550.
4. How else can Intel compete in the short term other than through determining their schedule of pricing? I'm sure that the R&D bosses are under the gun to deliver something to beat Athlon in the desktop market, but you can only design VLSI chips so rapidly.
I'm excited about Athlon (despite the name). I love the prospect of real cometition. I would love to own one. Or several. But I'm not going to blame Intel for reacting to AMD as if they were actually competing. And I'm positive that if the tables were reversed that AMD would be pushing aggressively on Intel.
Slashdot Mirror
Also, it has to be noted that Intel provides more of a 'package' to it's OEMs...
Also, part of the package Intel has is long term contracts and marketing arrangements such as the Intel Inside campaign, which locks OEMs into using Intel chips in return for sponsored advertising.
This pretty much consigns AMD to the home/consumer and white box market. The major vendors such as Dell and Compaq probably couldn't used AMD chips in their "Business Desktops" without some serious renegotiation.
--
Business. Numbers. Money. People. Computer World.
(I'll let you clean up the English)
Intel undercuts AMDs price
In view of the forthcoming launching of a vessel of AMDs flagship K7 " Athlon " accesses Intel to the extreme one: For the first time the processor giant undercuts the price of the directly comparable competition product of competitor AMD. The Pentium III with 600 mc/s, which Intel wants to throw two weeks before the AMD Premierenfeier in running, will be clearly cheaper after c't information than the fire-new 600-MHz-Athlon. Its price determined AMD to 699 US Dollar, while Intel had advised a OEM price of 823 US Dollar (with acceptance of 1000 pieces) until recently for the 600-MHz-P III. Still before start of sales of the Athlon Intel thereby seems to recognize its advance in performance. An outline of the bench mark results published so far brings c't in output 14/99 (starting from Monday at the kiosk).
Whether AMD can be pleased about this respect proof of the powerful competitor, is however questionable. The processor prozessorschmiede fights with high losses, all hopes rests with AMD
Yeah, but that's really hard to establish in this case. Take the Celeron example. They aren't selling them below cost, teechically. They're probably making a decent per-unit profit. But that doesn't take into account R&D. They'll still living off of the PPro R&D, and almost no research went into creating the Celeron (relative to other chips). A good portion of the cost of the chip is the research that went into it, and in this case, they might actually get away with "dumping" (I doubt it, though). You can't say, "Hey, it cost you more to develop that than you're selling it for!" because they might be able to milk it for another 5 years (PPro), though I doubt it. The only way they'd get caught for dumping is if they sold below the per-unit cost.
1. Intel makes a profit on all of their chips. With the possible exception of the bottom of the Celeron line, which may come in right at cost. So accusations of dumping are unlikely to fly in the courts.
2. If you really believed in competition, why would you announce that you are going to buy an Athlon "on principle"? If you said, "well, it costs more, but it performs better" then I could see that as supporting competition, but the nature of competition is to reward success to the best product on the market, and price will always be a factor in determining the 'best product'.
3. There is a lot of complaining about Intel 'announcing price cuts for an unreleased product', but this is just a rumor, not an announcement. However, AMD *has* announced prices for chips unlikely to make it to market in the next several months, so that customers could see how much cheaper a -2 month old 550 MHz Athlon is in comparison to a current PIII-550.
4. How else can Intel compete in the short term other than through determining their schedule of pricing? I'm sure that the R&D bosses are under the gun to deliver something to beat Athlon in the desktop market, but you can only design VLSI chips so rapidly.
I'm excited about Athlon (despite the name). I love the prospect of real cometition. I would love to own one. Or several. But I'm not going to blame Intel for reacting to AMD as if they were actually competing. And I'm positive that if the tables were reversed that AMD would be pushing aggressively on Intel.
seamus