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Technology Stocks : Intel Corporation (INTC)
INTC 36.33+0.4%1:11 PM EST

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To: slacker711 who wrote (182518)11/4/2005 1:11:59 AM
From: Amy J  Read Replies (1) of 186894
 
RE: "Samsung should have refused to sell to Apple?"

Samsung allocated 40% of its entire supply to only Apple, while supply was squeezed to other mp3 buyers.

Some of those mp3 firms went out of business as a result.

If you are an mp3 firm, you would rather buy from Intel - a reliable supplier - not a vendor with a motivation to put you out of business. You'll note Samsung supplies components and sells mp3 players as well, so they are competing with their own customers. One way to manipulate the market, is by squeezing supply to certain firms you compete with.

Compare this to Intel - Intel only sells components and platforms - they certainly do not compete with their customers by selling consumer electronics products. Even startups are able to get reliable supply of components from Intel's channel during shortages.
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