Jim,
Credit Suisse First Boston analyst Charlie Galvin also expressed concern about chip prices, saying, "We believe AMD has already engaged in a price war."
He wrote in a note to investors that AMD has been dropping the prices on its 1-GHz and higher chips by $10 to $15 per week over the last two months. "It appears that AMD has engaged in a price war, where it is essentially bidding against itself," wrote Galvin, noting that Intel has yet to ship large numbers of chips at those speeds.
upside.com
I find the common thread in posts of people who have a stake in Intel stock price. They all want to talk AMD into not claiming it's just fair of the market. Just notice how the blood pressure and decibels go up as AMD does claim it's share of the market.
Intel, OTOH could just concede, let AMD sell all of their superior chips at whatever price market can bear. There are not too many. If Intel stopped strong-arming OEMs to not sell AMD chips in commercial space, the surplus high speed Athlons would be used up, and there would be no price war.
The bottom line is, AMD will sell all the high speed chips. It is up to Intel how hard they make it on AMD. The harder they make it on AMD, the deeper the price cuts will be. As a result, Intel's price cuts will have to be even deeper to price their inferior chips compared to Athlons.
Joe |
