Advanced Micro Devices - Moderated (AMD) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 246.76

-0.5%

Nov 14 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Nazbuster who wrote (37799)	4/29/2001 7:16:28 PM
From: Bill Jackson	Read Replies (3) of 275872

MacRandy, Price wars hurt equals equally in their shares are equal. In price wars $$ are burned. If one has 75% share and the other 25% and costs and ASP are equal the bigger will burn $3 for every one the smaller one burns. This is also called a pssng contest. Intel has deeper pockets that AMD and thus has a bigger $$ bladder. Against this is the real fact that the P-4 costs more to make than the AThlon and so AMD can keep their price a little lower and still make $$ where Intel loses $$. A contest like this can have only one outcome...death for intel, unless they get the P-4 cost down to the same area as the AThlond. So for a year this price war will favor AMD and Intell will draw down cash in the hopes that the .13 P4 and their 64 bit toad whacker will beat AMDs .13 AThlon and the AMD toad whacker. In general it is a cusp and Intel can be hurled down and AMD elevated as their processors emerge and enter battle as it is far from certain that either will win. Bill

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next