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Technology Stocks : Intel Corporation (INTC)
INTC 48.72+3.0%Jan 14 3:59 PM EST
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To: Tenchusatsu who wrote (171238)9/26/2002 12:08:28 AM
From: BelowTheCrowd  Read Replies (2) of 186894
 
Even a complete monopolist has to set prices so as to maximize returns. You won't do that by jacking up prices so high that people just indefinitely put off buying it. Especially true in a volume business. With only one producer, there would less pricing pressure, but the pressure would still be there. ASP declines would slow, maybe even stop completely for a short amount of time, but that's about it. This is especially true if the current soft market and slow growth continues.

Of course, the reality is that AMD would not just "go away." It might cease to be AMD. It might operate under bankruptcy protection while they took bids from those Asian manufacturers who would probably be the only ones interested in buying them. In fact, it could accelerate Asian participation in the processor market. But the idea that complex expensive designs, the engineers who built them, and the FABs that manufacture them would just somehow disappear is pretty stupid.

Competition is a fact that is unlikely to change. It might get weaker or fall behind a bit more, but it'll be there. Those who think that AMD running out of cash might change that fact are probably better at processor benchmarks than they are at understanding how business works.

mg
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