Elcs
Diamond Member
- Apr 27, 2002
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Originally posted by: Zebo
Originally posted by: stmok
The "waterfall effect"...Hmmm.
This is the way I see it.
(1) AMD does NOT currently have the production capacity to meet demand for dual-core. (This is being addressed with a new Fab that is under construction).
(2) AMD prices the CPUs this high to starve off demand until they are ready.
(3) They are priced in a distinct segment to avoid confusion. (ie : If you want dual core now, be prepared to pay)
(4) As production ramps up, more X2s can be put into the market. (Lower speed ones, etc)
(5) This, as a result is no different from when the A64 was released. It started off expensive at first, but gradually trickled down in price and speed grades as production increased.
I think (5) is the waterfall effect.
Good call.
Termed in Marketing as 'skimming'.
Perhaps they will release a cheap and slow Dual Core processor that makes the Intel price equivilent look like a snail.
Perhaps the 4200-4800 X2's are the height of technology, aimed at getting money from the early adopters and the people who desire the fastest. Afterwards, introduce something like a dual core 3200+ @ 1.6ghz at a lower price point to blow Intels 'cheaper processor' tactics.