Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 203.14

-0.8%

Jan 9 9:30 AM EST

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To: fastpathguru who wrote (241942)	10/5/2007 8:01:53 PM
From: Tenchusatsu	Read Replies (2) of 275872

FPG, > But you've got your perfect little excuse to replay the "but rebates are good!" strawman over and over and over... That "rebates are good" argument was a troll, not a strawman. ;-P My original point was that AMD is making the wrong argument with that $14.89 "premium." You are arguing from the standpoint that Intel has unfair market power, and you come up with a very long-winded hypothetical situation, as if I'm too "thick-headed" (your words) to know what you are talking about. I repeat: Moving volumes by offering volume discounts is a common practice in business. There is no "gun to the head" of the OEMs, as they can decide for themselves whether to tell Intel, "Screw your rebates, I'm going with AMD instead." The cost to make that transition wasn't prohibitive at all, as HP and Dell demonstrated. So much for that "smoking gun." Either way, the OEMs will do what's best for the OEMs, and that means buying parts at the lowest overall cost possible. Whether it's through volume rebates from Intel or through buying deeply discounted parts from AMD, the result is the same. Competition is lowering their costs. Tenchusatsu

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