Originally posted by: pm
It is not like you have a handle that says "chip speed" on the side of a machine in the fab and you crank the handle to "faster" whenever the competition comes out with a new design.
😀
I dont see why people dont trust pm and didnt trust wingz.
think about it like this. if everyone is producing a 2ghz product, for, say $100, and you can produce a 3ghz part, if you only increment by 200mhz, you can charge, say, $150 for the 2.2ghz part. Then the price drops to $100 as you release a 2.4 for $150, and so on. OR you can right away release everything, with the 2.2 at 150, 2.4 at 200, 2.6 at 250, 2.8 at 300, and 3.0 at 350.
How does this make you less money? The
vast majority of people and companies do not "upgrade" just because of speed increases. They upgrade when they feel their existing machines are too slow, and they replace them with high-end machines. So if you have a very fast part, then you could get more purchases of the higher-end parts earlier as people buy, say, 2.6 or 2.8 instead of 2.2ghz, paying you
more. OR, they will still only want 2.2 and buy it, in which case there is no net effect.
However, the gains from the people buying the fastest stuff from you will put you WAY beyond your competitors.
Hopefully thta makes sense
edit: fixed missing quote, i hope!