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Politics : Formerly About Advanced Micro Devices

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To: tejek who wrote (108260)	4/28/2000 3:14:00 PM
From: that_crazy_doug	Read Replies (2) of 1576359

<< Intel has a history of manu. chips at very low prices, AMD does not.....if there is a price war, AMD will be hurt badly. AMD's only hope right now is that Intel (because of its screwups) can not afford to show a bad quarter earnings wise.....bad in the sense that their profit margins are reduced, not eliminated; meaning they can afford only to wage a price 'skirmish' and not a price war. >> While Intel is in a shortage I don't think the threat of a price war is too great. Especially when the shortage is most strongly felt in the most expensive range. They can't supply the high end where they make all the money. AMD can make up considerable losses at the low end by selling just a few 1 Ghz pcs. Also, I believe one of the great fallacies about AMD vs Intel is that AMD couldn't compete due to prices. I think AMD couldn't compete because the k6-2 and k6-3 line weren't worth buying.

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