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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 217.91+0.9%3:59 PM EST
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To: Elmer who wrote (60990)10/29/2001 5:38:26 PM
From: Bill JacksonRead Replies (2) of 275872
 
Elmer, Since AMD parts were priced lower than Intel parts Intel had to move to counter them. Had they stayed there and warred by marketing methods then we would have a different chip ecology and far higher prices with both AMD and Intel making more money.

Intel chose not to do this. Intel felt they were able to totally capable of extinguishing AMD off the face of the earth.

IBM, CPQ, GTW etc sense a stick here and they bought AMD parts and beat lower prices out of Intel with that stick.
Dell made a decision to take advantage of the game IBM and CPQ and GTW played by staying with intel.

Now the parts are totally commoditised there is not reason for them to buy AMD...unless intel tries tp up the prices and then see how fast IBM, CPQ,GTW and maybe even dell start to sell AMD parts again.

There is not doubt, Intel miscaalculated and it cost them billiosn, they stayed profitabel, but at a far lower level than if they had not tried and failed to extinguish AMD.

In effect intel made huge manegrial error and their SH are now paying for it.

It is academic that AMD loses $$ today and Intel makes money.

Without Intels actions of price war then AMD would make money and Intel would have made $25 billion more....but AMD would be far stronger than it is today.

That is why Intel warred against AMD, to kill it ot weaken it.
They did not kill AMD, they have weakened it
Bill
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