Sunday, August 22, 1999 Published at 16:18 GMT 17:18 UK Business: The Company File Chips are down in price war Intel is sparking a new price war among pc makers Computer chip giant Intel is set to spark a PC price war by slashing the cost of some Pentium processors. The world's top chip maker is poised to cut the price of the 550MHz Pentium III by 26%, sources say. It means that in the US, the cost of some processors will drop from $658 to $487. It is the latest attack in a war between rival chip makers. Personal computer users are already set to benefit as manufacturers cut their own prices. The biggest price cut - 41% - will be on the 500MHz Pentium III, an Intel source said. And the 450MHz Pentium III may be reduced by 21%. The prices of selected Pentium II chips will also come down. Intel will reportedly slash the US cost of at Pentium II 450MHz from $230 to about $183, a cut of more than 20%. Intel officials would not comment on any price plans. Chip makers do battle But the company reveals price cuts to PC manufacturers in advance and they use the information to plan their own reductions and to draw up new models using the lower cost of chips. PC giants Hewlett-Packard and IBM are believed to be already planning to announce reductions on their desktop models. Last week, Gateway revealed wide price cuts on its consumer PCs. Intel's action is the latest attack in a war with rival chip firm AMD, which undercut Intel when it launched the new Athlon K7.

http://news.bbc.co.uk/hi/english/business/the_company_file/newsid_427000/427231.stm

Here comes The New Paradigm

-- Drken (Drken@bubble.gone), August 23, 1999

Answers

And this belongs on this forum because........?

-- b (b@b.b), August 23, 1999.

Thanks for the post. That was interesting and good news....

-- Nancy (HAYSandCO@aol.com), August 23, 1999.

and this belongs on the forum because

because it means lower profits for Intel,and the Technology sector. Last aces pulled from their sleeves.Trouble ahead.This is not a drill

-- Drken (Drken@bubble.gone), August 23, 1999.

"because it means lower profits for Intel,and the Technology sector. Last aces pulled from their sleeves.Trouble ahead.This is not a drill "

Okie doke stock market guru, yes one would be lead to believe that Intel's profit would be down, however, they are battling against a competitor now (a healthy thing for a market). They are trying to increase thie volume again and regain some lost market share, this could also translate into increased sales.

-- b (b@b.b), August 23, 1999.

Maybe they're trying to dump their stock before the new year, At this time, they'll have to pay the trash man a waste disposal fee.

-- susan (number9@mindspring.com), August 23, 1999.

b

You appear to ignore supply and demand.

Intel and AMD (and Ford and GM) etc would only cut prices if supply exceeds demand. The thing to watch will be if the price cut stimulates demand OR demand continues to slow triggering another price cut. This is defaltionary and common inthe computer chip markets.

Not sure if the Pentium price war is Y2K related. Could be due to a slowdown on new PC purchases as businesses and firms have put a lid on new PC purchases pending completion of Y2K remediations.

-- Bill P (porterwn@one.net), August 23, 1999.

As referred to on http://sysdoc.pair.com, it appears that AMD has finally got the upper hand and Intel is running with its' tail between its' legs. Might be off subject on Y2K but this is what I believe what is governing Intel's motive.

-- susan (number9@mindspring.com), August 23, 1999.

So what else is new. Thanks for the heads up. I'll postpone my next purchase -- but this has nothing to do with Y2K -- and Intel stock is not going to require a garbage removal fee anytime soon. How much do you think it cost to build a chip fab factory? Can you say Billion?

This thread is typical of several I've seen lately. Practically anythink and everything out there is taken as "evidence" of some sort of Y2K caused problem. This drop in chip prices has been going on since the 8088 dropped in price when the 286 came out! Everytime faster chips come out, the price on previous models go down. Get a grip! It's not due to Y2K!!!

And another thing. Y2K may be bad or it may be a BITR. I don't pretend to know. And yes, there have and will continue to be Y2K related and caused problems -- but a lot of you need some sort of mental enema 'cause you keep posting news of practically every tradegy that comes along with the question "do you think the cause was Y2K?" -- refinery, chemical plant fires, you name it. Sounds to me like a bunch of people here are looking for confirmation that TEOTWAWKI is right around the corner, and normal stuff that happens every year is "proof" of impending DOOOOMMMMMM. BWAAAAAAHAHAHAHA!!!!

I can just imagine the responses I'll get to this post.

"Yeah, but this one was...." so they all are?

"How about that sewer spill, you perverted polly, you...take that!" So one or a few events mean they all are?

"You must be a shill/disinformation agent/an idiot/a polly/one of the men in black sent to disrupt this forumn, ect, ect, ect" --- I say to folks that think like this -- you are mentally off. I KNOW who I am. I'm just Joe programmer that's concerned about Y2K, but have a brain to think with, and an open mind -- instead of a closed made up mind that rejects all good news and clings and tries to fan into flame any bad news --- Delusional Doomer Dummies -- not everyone who doesn't think Y2K will be TEOTWAWKI -- or who just disagrees with your doomer outlook -- is a "plant" or a shill, or a paid operative, or just a "usefull idiot" of TPTB -- but I know my "denial" is taken as "proof" because your delusions, starving for reinforcement -- from the dearth of REAL bad Y2K news, and the days of DOOMMMM that haven't caused TSTHTF makes you grab for all the "evidence" that you can to feed your delusions and hopes for the world as you know it to end -- 'cause you have mental, adjustment or some other problems -- plus you HATE the government of our country -- and call yourself "true patriots" -- like the Tim McVey (sp?) types who still, like those hating America world wide would love to see our country fall. You're pathetic!!

BWAAAAHAHAHAHAHAHA Y2K duppes and Delusional doomer dummies!!!!

BWAAAAHAHAHAHAHAHHAHA Proud to be an American -- regardless of who's in office!!!

-- Sigmund (Analyst@seeclearly.now), August 23, 1999.

Eat a valium///I'm not a doomer, I am a realist, and I am on your side.

-- susan (number9@mindspring.com), August 23, 1999.

To Signumd, We were talking about AMD and Intel, and then, all of a sudden, you get off point, talking about some patroit bullshit. Did anything that I said cause this brain fart? How in the hell could a conversation about hardware manufacturers pervert your conversation into talking about doom sayers and patriots? Keep on point M.F.

-- setec astronomy (number(@mindspring.com), August 23, 1999.

seatech astronomy (aka teck geek wanta be watching too many reruns of the movie Sneakers),

Just reread the second paragraph. The rest of my post follows from that. Some of what follows is a little venting and predicting -- which you, for instance fulfill. I think Y2K is a very real issue. It's just that I find all the post trying to turn practically any news blurb into a Y2K story pathetic. Bad news rates a tread as "proof" that Y2K is to blame -- or at least should be discusses to determine if it's to blame. Pathetic. What's even more pathetic is the reaction of others here when one points out the absurdity of such drivel.

My impression is that often the person is labeled a polly for not being a "true believer" in impending doom, castigated, labeled, and often accused of being some type of gobmint operative or paid industry shill by some "intellectual luminary" like a,@ or some such. I also think a lot of these types are dangerous as well as pathetic and delusional.

Either that, or usage of bad logic prevails. If one is, they all are and like stuff. It really dismays me how pathetic most people's logical and critical reasoning is on this forumn. I'm not a polly. I just find puke thinking to be pathetic.

And then there are responses like yours. Profane. Calling someone a M.F., ect. Most likely comes from someone who is mentally lazy, reading quickly, and hits the "submit an answer" button before they've spent more than a second or two formulating one. Of course, there may just be a lack of intellectual ability to comprehend the prose, but I'm the generous sort and will give you the benefit of the doubt -- but I DO DOUBT your I.Q. is all that high. Have a nice life, jerk.

-- Sigmund (Analyst@seeclearly.now), August 23, 1999.

Sigmund, As inteligent as you would love for us all to believe, what in the hell does this have to do with the subject matter at hand Intel vs AMD

M.F.

-- Setec astronomy (number9@mindspring.com), August 23, 1999.

Sigmund, if you don't like the subject matter of this thread, please go to one that suits your needs.

-- Setec Astronomy (number9@mindspring.com), August 24, 1999.

"Intel and AMD (and Ford and GM) etc would only cut prices if supply exceeds demand."

would "only"? What business school did you go to? That is one reason, also attract new customers, clerance old stock because new stock has arrived (i.e. 600 MHz chips are now out, they are not mentioned in the price cuts, only 550 MHz and below...kind of like the new car models arrive, you slash last years model price), win back customers who have moved on and so on.

-- b (b@b.b), August 24, 1999.