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Politics : Formerly About Advanced Micro Devices

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To: Dief who wrote (24955)10/16/1997 12:28:00 PM
From: Petz   of 1575428
 
Dief, re:<It is hard to see the incentive for further price cuts from Intel.>

As long as AMD remains constrained on the supply side, and AMD is only hoping to produce 2 million K6s this quarter, why would Intel want to cut the prices on the 20 million or so processors that it will sell in the quarter?


You know that and I know that. It appears that Intel's goal is now longer to maximize profits but to destroy AMD. Just look at the price cuts and you'll see that the biggest one is at AMD's largest quantity chip for the 4th quarter -- the 200 MHz.

If Intel would cancel the November price cut, their stock would go up 10 points in a hurry.

Petz
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