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Politics : Formerly About Advanced Micro Devices
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To: Road Walker who wrote (122691)8/21/2000 9:26:11 PM
From: Eric K.  Read Replies (1) of 1578564
 
John Foul-- The cockiness is on your part. What does the actual number have to do with my assertion? You have provided no argument for the optimal price point where any additional reductions in price of the 1 GHz processor would not increase number of sales enough to increase net profit. Instead, you presented a hollow and irrelevant argument about margins. According to your logic, SGI should be a wonderful company to own-- much better to make a huge amount per part than to sell more parts. I do not claim to know the exact point of maximal profit relative to the curve of price per part versus number of parts sold, but neither do you. However, I believe it it closer to the two digit/three digit barrier than to the three digit/four digit barrier. Hint: you are the one making assertions about the correctness and optimality of AMD's pricing.

-Eric
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