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Date:      Sun, 22 Apr 2001 14:53:19 -0700
From:      "Ted Mittelstaedt" <tedm@toybox.placo.com>
To:        "~/.signature" <hawk@fac13.ds.psu.edu>, "Charles Burns" <burnscharlesn@hotmail.com>, <freebsd-questions@FreeBSD.ORG>
Subject:   RE: the AMD factor in FreeBSD 
Message-ID:  <000501c0cb76$a4a610a0$1401a8c0@tedm.placo.com>
In-Reply-To: <200104221838.f3MIcSn18714@fac13.ds.psu.edu>

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>-----Original Message-----
>From: owner-freebsd-questions@FreeBSD.ORG
>[mailto:owner-freebsd-questions@FreeBSD.ORG]On Behalf Of ~/.signature
>
>> The Celeron 2 somewhat irritates me because it shows Intel's 
>gross profit 
>> margins. It is the exact same core as the P3, so the P3 can 
>clearly be sold 
>> for much cheaper. Good thing for AMD to shave their margins down.
>> At least AMD is decent enough to make the Duron a separate core.
>
>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.  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.

Ted Mittelstaedt                      tedm@toybox.placo.com
Author of:          The FreeBSD Corporate Networker's Guide
Book website:         http://www.freebsd-corp-net-guide.com



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