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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 252.04+0.3%Jan 27 3:59 PM EST

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To: FJB who wrote (218828)12/5/2006 12:46:58 AM
From: Joe NYCRead Replies (1) of 275872
 
Bob,

The story is that flash was a large percentage of AMD business, small percentage of Intel's. In order to hurt AMD, Intel crashed flash prices to the point where everyone was losing money. Intel losing a money on small portion of their revenue, AMD losing money on large portion of the revenue.

Now that AMD has divested from flash (to a large extent), the incentive for Intel to continue to lose money on flash (by selling large volume of flash below cost) is diminishing.

Joe
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