Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 231.83

+1.7%

Jan 16 9:30 AM EST

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To: eracer who wrote (148447)	1/20/2005 11:44:41 AM
From: TechieGuy-alt	Read Replies (1) of 275872

What on Earth is "fair pricing"? No such thing. Most folks think pricing for a product is set by the manufacturer based on cost. Big mistake. The market sets pricing for any product. "Fair pricing" or in other words, "market based pricing" is what causes customer demand to generate revenues that maximize return on investment that went into creating the product. It can be a bazzillion $'s or it could be given away for free. If the pricing on the Intel chips is correct, then it's obvious that the strategy is to segment the dual core into its own segment, make the offering unattractive or otherwise incompatible for ready replacement for their regular "Xenon's" line and then pressure AMD into responding with similar low pricing- thus devaluing the AMD product. It's a trick and I hope that AMD completely ignores this Intel pricing and educates the customer(s) to the value of their dual core offering and charges a high price for it that customer readily pay! TG

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