| Don't expect the prices of 486 microprocessors to
plunge just because Advanced Micro Devices (Sunnyvale, CA)
won the latest round in federal court and is finally
competing against Intel for the lucrative 486 market.
Although the surprise ruling cleared the way for it to
begin selling 486 chips, even AMD admits it won't be able
to make enough chips this year to dent Intel's market
share or spark a price war. AMD expects to sell a few hundred thousand 486 chips this year. AMD and industry analysts estimate the worldwide 486 market at 25 million chips this year. They also estimate that Intel sold 5.5 million chips in the first quarter alone. In 1994, demand is expected to grow to 35 million chips, and AMD predicts it will win a 10 percent to 20 percent share. Still, AMD's 486 microprocessors give system vendors an alternative source of supply and allow AMD to tap Intel's single largest revenue stream. Until now, the only other commercial source for 486 chips was Cyrix (Austin, TX). On April 15, a judge ruled that Intel did not submit documents that could have affected the jury's decision. He granted AMD's motion for a new trial, opening the door for AMD to sell 486 chips based on Intel microcode. AMD is completing work on clean-room versions of the 486 that don't use Intel microcode. Those chips, which are scheduled to be announced on July 4, will eventually supersede the Intel-microcoded chips that AMD began shipping in late April. Although the clean-room versions are almost finished, AMD says it wants to begin selling 486 chips as soon as possible. Copyright 1994-1997 BYTE |