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News of 27/03

K6-III x Pentium III

The Empire Strikes Back

AMD just blew it. After a remarkable attack over Intel gaining nearly 20% market share with the K6 series(I and II) its K6-III just fail to deliver. Intel made a powerful move risking its own breed Pentium III and rose the performance of its Celeron. This brings the following on the neverending processor war:

On the lower end of the market AMD has reputation and a good price performance ratio. With a better Celeron processor Intel closes this gap and now AMD is lowering its prices( and earnings) to keep up.

On the high end desktop market, AMD K6-III simply can not enter because of its lack of performance when facing Intel´s PIII.

On the multiprocessor entry-level server market, Intel remains as the only manufactur since K6 does not support multiprocessing(K7 probably will.)

Since AMD is only present on a low profitability market, It is easily predictable that they are going to be facing tough times (and a drop on stock value) until K7 is ready to ship.

Intel regains its crow, even with a Pentium III which is not much more than the previous one, except on MHz.

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Last modified: Março 23, 1999