Sarmad Y. Hermiz Re..And the conclusion to draw is what ?
That Intel has lost at least part, if not all of its monopoly power and pricing. Companies that have lost their monopoly, etc. railroads before cars and trucks, airlines before deregulation, IBM, AT&T, F, now GM, ; have all had a hard time adjusting to the new realities. Monopolies allow you to sustain business practices, you can't sustain under intense competition. You must adjust to become meaner and leaner. A lot of people think that Conroe will be Intels salvation. Its possible, but not likely, because even if Conroe is as dominent over its competitors, as the original Pentium chips, it would be unlikely that Intel would ever regain the same monopoly powers, because no matter what, AMD's chips will still be good enough for most applications, and will be competitive in most segments, if not all. To adjust to the new realities, Intel needs a major restructuring, not just simply changing around a few people. We haven't seen that yet.
That Intel's ability to stop AMD's market share expansion will evaporate ?
It certainly will take different methods to stop AMD's market expansion. The old price cuts in the low end market segments, won't do it anymore. Also, both China, and India, are developing their semi industries, and both have great, inexpensive talent, combined with lots of money from trade inbalances to draw upon. To that end AMD is more used to the competition that Intel. |
