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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 223.81+4.5%3:52 PM EST

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To: Elmer who wrote (47396)7/12/2001 11:47:07 PM
From: dale_laroyRead Replies (1) of 275872
 
>Intel cannot start a price war by setting their prices above the competition any more than you can start a shooting war by hurling your cities into the path of an incoming ICBM.<

Bull! Commodore started a price war with TI while charging more for the Commodore 64 than TI charged for the 99/4A. A price war is started by the first company willing to sacrifice more in ASP than either can be potentially gained or lost in market share. Up until Q2 AMD was not engaged in a price war because they were gaining both ASP and market share. Intel's price war was started with the introduction of the P4, as was evidenced by their inability to retain sufficient market share to offset loss in ASP.
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