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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 221.58+3.5%12:33 PM EST
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To: economaniack who wrote (241837)10/5/2007 5:30:32 AM
From: TenchusatsuRead Replies (3) of 275872
 
Eco, that was a very long-winded self-contradicting argument you just posted.

Rebates represent volume discounts, a practice that is common in any business or industry. They effectively LOWER ASPs. You are trying to have it both ways, by arguing that Intel enjoyed the market power of lower ASPs while earning the benefits of higher ASPs.

But even if that were true, who was damaged? AMD because they couldn't charge more and earn a profit? If so, then consider the hypothetical situation where Intel lost its "unjust" market power. Intel would not be able to offer rebates or otherwise discount their processors because that would be considered predatory. Meanwhile AMD can then charge more for their processors and still be able to compete. Prices rise even more for PCs because a duopoly will have been established.

But wait a minute! I thought AMD argued that PC prices should be LOWER in a competitive market! Hence the contradiction.

So like I said, if AMD wants to argue on behalf of the consumer, they would have filed a class action lawsuit on their behalf. Instead, what AMD wants amounts to nothing more than corporate welfare, paid for by Intel.

Tenchusatsu
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