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Politics : Formerly About Advanced Micro Devices
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To: Tenchusatsu who wrote (147760)6/19/2002 5:03:37 PM
From: TimF  Read Replies (2) of 1580537
 
If you haven't noticed, AMD is already dropping Duron. Watch as Intel raises the bottom on low-end CPU prices to compensate for the inevitable drop in server margins.

When Hammer ramps up Tbred becomes the new low end AMD chip.

In any case exiting low end desktops is not like exiting desktops. The desktop market is the biggest part of the market.

Start with marketing and cementing relationships
with customers.

Good idea.

Provide products and services that the incumbent won't want to provide.

Which for AMD would mean at least being reduced to just the low end, and at most getting out of the flash and the CPU markets (which basically is AMD's whole business). The first would make things more difficult for AMD. The 2nd would basically be a decision by AMD to go out of business.

Never start a price war with the incumbent; instead, defend yourself against any price war that the incumbent will wage against you. (Matching price drops is not a viable defense.)

So how do you respond when the other side of the war drops their prices?

AMD might want to consider thinking outside the box if they want to survive this.

Maybe but I think if AMD tried to follow your plan they would be out of business in a couple of years.

Tim
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