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Politics : Formerly About Advanced Micro Devices
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To: tejek who wrote (66696)7/26/1999 7:25:00 PM
From: Ali Chen  Read Replies (1) of 1574199
 
Ted, Re <"predatory pricing" and "cost reductions"> Great reply,
thank you.

I remember not-so-old story from Intel thread,
when Intel dropped their price for some parts
from about $800 to $600-something. iZealots were
confident that this was due to "cost reductions"
as they were told - and all this while the
whole cost of the processor was never more
than $100. Where was our friend Fred Fahmy?
He probably could explain them that you cannot
"reduce" $100 by more than $100, no matter how
do you cut manufacturing costs. Apparently the
relation between "cost reductions" and monopolistic
price manipulation is somewhat fuzzy in i-brains
when clouded by huge paper profits... they told
me that I don't understand percents :)
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