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Politics : Formerly About Advanced Micro Devices

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To: Paul Engel who wrote (64782)	7/11/1999 10:02:00 PM
From: fyo	Read Replies (1) of 1579779

Paul - Re: If Intel ADDS to their GLUTTONY OF PROFITS, then by definition they are SELLING AT A PROFIT. Well, that is not strictly correct (as you well know :)). Anyway, the discussion of Celeron profitability has been taken up before on this thread and discussed quite thoroughly. Personally, I see no reason to believe that Intel is selling Celerons below marginal cost. Does it cost them profits overall by eating away at PII/PIII market share? Well, that is another discussion altogether and it is certainly not illegal for a company to make a product that undermines the sales of another of its products. Short term, it seemed the only solution to Intel's problem (and it solved it quite effectively). Longer term, Intel needs to differentiate their top product further, so that the Celeron sales no longer undermine their PIII/CuMine sales, while still keeping the pricing pressure on the low end. --fyodor

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