Path: utzoo!utgpu!news-server.csri.toronto.edu!rpi!usc!cs.utexas.edu!asuvax!ukma!hsdndev!cmcl2!uupsi!rodan.acs.syr.edu!amichiel
From: amichiel@rodan.acs.syr.edu (Allen J Michielsen)
Newsgroups: comp.sys.ibm.pc.hardware
Subject: Re: Math chip wars...
Keywords: 80x87
Message-ID: <1991Jun26.221247.12624@rodan.acs.syr.edu>
Date: 26 Jun 91 22:12:47 GMT
References: <51192@ut-emx.uucp>
Organization: Syracuse University, Syracuse, NY
Lines: 26

In allred@bongo.cc.utexas.edu (Kevin L. Allred) writes:
>In routh@eltanin.rtp.semi.harris.com (Kevin Routh x622) writes:
>>?  pricing for all speed grades of the 387 was consolidated at $299."
>>I am also happy because...many more 386 owners can afford a math chip.  
>Intel bashing aside, the point really is that this is cutthroat
>capitalism at work,... Intel was finally feeling the
>competition from the new 387 compatible manufactures (CYRIX, ITT, SDC,
>and now AMD).  ...cut their price in response to Intel's cut.  The new 
>...price on the chip... 16 MHz 387sx compatible, was $119.

   If you stop to realize that the classic cost curve for this type of
product is downward sloping over time, and the the prices have been slowly
coming down even without the extra competition.  Not all of the savings are
due to competition.  I remember les than 4 years ago when 4.77 Mhz 8087's
were well over $200, and now they are found for $50 or so.  The intereting
thing is that the 8088 prices have dropped from about $16 to $5 over the
same time.  Given the stability of high proces for quantity 1 30386 chips
I wonder if or when these will really tumble to a price where they are
disposable....
al


-- 
Al. Michielsen, Mechanical & Aerospace Engineering, Syracuse University
 InterNet: amichiel@rodan.acs.syr.edu  amichiel@sunrise.acs.syr.edu
 Bitnet: AMICHIEL@SUNRISE