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- From: markg@county.lmt.mn.org (Mark Gilbert)
- Subject: Re: Does a 487sx shut down the 486sx??
- Message-ID: <markg.21.716260530@county.lmt.mn.org>
- Sender: usenet@lmt.mn.org
- Nntp-Posting-Host: mg.lmt.com
- Organization: LaserMaster R&D, Minneapolis, MN USA
- References: <1992Aug26.173519.22421@unislc.uucp> <1992Aug27.183804.8605@tandon.com> <GLEW.92Sep9195211@pdx007.intel.com> <1992Sep10.134414.1607@crd.ge.com>
- Date: Sat, 12 Sep 1992 01:15:30 GMT
- Lines: 16
-
-
- Perhaps I diverge, taking this thread back a step, but I think that you are
- making a bad assumption that the cost of a product depends primarily on the
- cost of manufacturing. Companies routinely adjust prices for a variety of
- reasons, including: relationship to other products in a product line,
- perceived value of the product by the consumer, and the products and prices
- of competitors.
-
- In the case of the 486SX vs. 486DX, Intel sets the DX price high and the SX
- price low to establish a product line. The DX is the premium product and
- commands a premium price, producing a higher margin. The lack of
- competition for the DX makes this possible. Competition from the 386 keeps
- SX prices low, and Intel wants to compete successfully against the 386 to
- promote the perceived value of the 486.
-
- Mark Gilbert
-