Date: Mon, 23 Apr 2001 10:13:58 -0400 From: "~/.signature" <hawk@fac13.ds.psu.edu> To: "Ted Mittelstaedt" <tedm@toybox.placo.com> Cc: "Charles Burns" <burnscharlesn@hotmail.com>, freebsd-questions@FreeBSD.ORG Subject: Re: the AMD factor in FreeBSD Message-ID: <200104231413.f3NEDwn25143@fac13.ds.psu.edu> In-Reply-To: Your message of "Sun, 22 Apr 2001 14:53:19 PDT." <000501c0cb76$a4a610a0$1401a8c0@tedm.placo.com>
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Ted tubmled >I wrote > >Sort of, but not really. Over all the processors they sell, they > >need to cover their average cost, which includs the fixed & sunk > >costs of development, plus the marginal cost of production. This scheme > >lets them share the huge sunk cost between the PIII and the celery, > >actually lowering the average cost for each. They just couldn't > >cover those costs if they sold PIII at vegetable prices . . . > No, what this is, is Intel sticking it to the folks that want to buy a P3 > to support cheaper prices on the Celery. I don't think soo. If the Celerey were to be separately developed, the P3 price would be higher, not lower, than it is now. The celery might or might not exist. The choice isn't between current prices and P3 at celery prices, but between current prices and no cheap celery (with the P3 more expensive). > This only works because Intel > has successfully propagandized the majority of IT people that are > purchasing CPU's for high-end servers and such, that the P3 is better than > the AMD chip. But, if those IT people catch on then the volume of P3s > will drop so far that they won't be able to get the money from P3 sales > to support Celery R&D and they will have to raise prices on the Celery to > pay for the R&D and drop prices on the P3 to keep from losing the market. Which continues until the price of celery and P3 are the same, which will be close to (and probably above) current P43 prices. To this point, I"ve been speaking as an economist. But as an economists, it's tough to explain how the price of the P3 can be above the AMD price at all; I'll leave that for the marketing folks :) In a similar vein, as an economist it's quite easy to explain why a firm would pay women less then men for the same work. I have yet to see an explanation as to why the firm would pay men *more* than women for the same work; the rational act at that point is an all-female work force . . . hawk, economist -- Prof. Richard E. Hawkins, Esq. /"\ ASCII ribbon campaign dochawk@psu.edu Smeal 178 (814) 375-4700 \ / against HTML mail These opinions will not be those of X and postings Penn State until it pays my retainer. / \ To Unsubscribe: send mail to majordomo@FreeBSD.org with "unsubscribe freebsd-questions" in the body of the message
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