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Motorola G3/400 CPU under $500 in 1000 Qtys
Will this mean lower cost CPU Upgrades this Spring?


Wonder what a G3/400MHz CPU Costs to a large volume (1000 pieces) manufacturer? Prices have been cut by Motorola it seems according to this information I just received.

" Hi Mike,
Just a heads up on G3 cpu pricing that may have been missed with all the MacWorld expo news.

Motorola has just reduced prices on their G3's by 25% or more (probably in anticipation of G4 production) which should translate into cheaper G3 upgrade options. With the new ZIF upgrade cards at $150 and a 333Mhz cpu at about $250 (the 400Mhz cpu is $495 srp in quantities of 1000), hi-performance cards should be running between $400 and $600 by early spring. See the PR at:

http://www.mot.com/SPS/PowerPC/library/press_releases/750_400pr.html

Regards, Fred "

The CPU is usually the most expensive component of the CPU card, but high speed cache is also expensive and there are manufacturing, distribution and marketing costs as well. Let's hope this price cut is seen at the retail level soon. With a new Yosemite costing as low as $1600 SRP (complete system), I expect CPU Card prices will continue to fall, as they have over the last year. Originally a 250/125/512K was over $1500, now it's under $400.

One major factor is the glut of cards and speeds. With prices falling it will become hard to fit in all the speeds/models in the compressed pricing range. I expect some sort of shake-out this year, there are just too many players and too many models out there in my opinion.



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