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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: Petz who wrote (252219)5/21/2008 12:17:23 PM
From: wbmwRead Replies (2) of 275872
 
Re: I find it peculiar that the Intel defenders rail on and on about how inefficient AMD is, and then when it is explained to them that the below-cost test is based on Intel's costs, not AMD's costs, they claim it's an untested concept.

You must not be paying attention, because this false argument has come up numerous times, and people have defended it multiple times.

- No, Intel is not selling below Intel's costs - this will be easy for Intel to prove
- ?, Intel may or may not be discounting below AMD's costs to win a given account, but either way, it's the right of any competitor in a free market economy (including one with a large share of the market) to compete for special accounts
- Even if Intel were discounting below AMD's costs, AMD is not an equally efficient competitor, so it does not imply that Intel is discounting below their own costs
- AMD is less efficient because of incompetent mgmt - their yields are lower, which increases costs, and that was a mgmt decision to go with a low yielding SOI process - and their roadmap is in a shambles among multiple product delays and inconvenience to their customers - all very easy to prove
- The courts have found discounting above costs to be legal and beneficial to the consumer, so if Intel is discounting above their own costs and below the costs of a less efficient competitor, then their competitive behaviors are perfectly legal

Clearer...?
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