Formerly About Advanced Micro Devices Message Board

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Politics : Formerly About Advanced Micro Devices

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To: Steve Porter who wrote (64668)	7/10/1999 2:22:00 PM
From: Paul Engel	Read Replies (1) of 1579758

Steve - Re: "stop the price cuts. It's clear that without the recent price cuts Intel's profits owuld be even LARGER" What a perfect example that displays your COMPLETE LACK of understanding simple business practices. Intel cuts their prices for several reasons - First, Intel - as ALL SEMICONDUCTOR COMPANIES have ALWAYS DONE - cuts prices on an ongoing basis as part of the LEARNING CURVE - their costs continually drop so they pass these cost savings on to their customers. Second, price elasticity - the lower the price, the more they sell and the combination expands markets and revenue and, hopefully, profits. Third - Intel has competition - and they respond to competitive pressures so as to maintain and/or expand their market share. Get over it, Steve - Intel WILL KEEP DROPPING prices on existing CPUs. Get some "business friends" to explain this to you. Paul

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