Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 231.94

+0.1%

3:59 PM EST

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To: Tenchusatsu who wrote (251960)	5/19/2008 9:58:01 AM
From: pgerassi	Read Replies (1) of 275872

Dear Tench: If a company can never sell below marginal cost, then anytime a competitor can not give away any significant number of units away free proves that the effective pricing structure on the company in question is below cost (zero is always below cost), period! No matter how you slice it, 840K units is a significant amount in a market that worldwide sells about 3-4 million weekly. In the EU, and many other countries including the US, any pricing structure that effectively leads to this result, is considered anti competitive and runs afoul of antitrust laws. No company can make 840K CPUs for free, not even Intel. Even GE couldn't make 840K 60W light bulbs for free and 60W light bulbs are a lot easier to make and far cheaper than CPUs. Its arguments to the contrary that are pathetic and absurd. Pete

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