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Technology Stocks : INTC
INTC 43.75+0.6%3:59 PM EST
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To: Peter Greenhill who wrote (5)3/17/1997 9:45:00 AM
From: Reginald Middleton   of 990
 
First of all, there is nothing wrong with INTC attempting to block the successful release of a competitors product. That is proactive business strategy. I have noticed that many of teh techincal elite on SI have a sense of morality that does not mesh with sound business practice. That being said, it appears that INTC did not attempt to block AMD's product release, but simply enforced their claim on intellectual property. And if the inverse is true, I must reiterate - So What? INTC is a for-profit, ongoing business concern and not a charity.

< If they can produce faster cheaper processors- whats the
problem? Surely we will all rush to buy these marvellous products as the big PC manufacturers rush to put them in their machines.>

Things are not that simple. There are certain perks and protective barriers to entry that are inherent in being the dominant industry leader, number one being nearly exclusive access to the most valuable channels of distribution. I am sure there are underlying pressures applied to distrubutors to use INTC poroducts eventhough AMD or Cyrix may have a techincially superior solution. In order for those barriers to be demolished, the probabiltiy of significant cash flows emanating from the competitors products must be substantial, which by way of the circular reference, is nearly impossible without the broad acceptance of the competitors products.
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