Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 223.44

+4.3%

3:59 PM EST

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To: fastpathguru who wrote (247859)	2/15/2008 2:26:33 PM
From: wbmw	Read Replies (2) of 275872

Re: LOL, Yeah, Intel would be super-motivated to spend billions ramping capacity so they can end the "temporary price increases..." Maybe you need to go back to school and retake Econ-101. Intel wouldn't lower prices because they are "super-motivated" to lose pricing power. They would lower prices when supply has ramped up in order to grow back demand. Remember your earlier premise: Intel would have to raise prices to slow demand because they wouldn't have the capacity to meet it, given your hypothetical situation involving an instantaneous disappearance of AMD. Whether you realized your own words or not, you were proposing a situation where Intel would take advantage of PRICING ELASTICITY to lower demand for their products to meet capacity constraints. Now, in order to deliver all the newly ramped capacity to customers, they would then have to LOWER PRICES, because the market is ELASTIC, and demand will not recover for PCs until prices are lowered to what the market perceives to be affordable. Come on, fpg... think for a change.

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