Formerly About Advanced Micro Devices Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Formerly About Advanced Micro Devices

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: AK2004 who wrote (25070)	10/19/1997 5:06:00 PM
From: Bill Jackson	of 1574868

Albert; In competition circles this is known as a 'firebreak' strategy. It is more important to prevent AMD from getting a larger margin which would allow debt payments and rampups than for Inetl to make that profit. I estimate that Intel 'burned' around $10-20 for every $1 they denied AMD.To be more precise I would have to cgart the ASP for their processors on the old declining price curve(quarter by quarter) and then make another with the agressive Kill AMD price cuts, and then compare the different areas under those curves. SInce they(Intel) make around 15 times as many CPUs as AMD, they could have ignored AMD completely and still sold the same number of CPUs at higher prices. Of course the old oil robber barons knew this strategy well, they would often sell kerosine and gasoline at artificially low prices in the territory of a competitor they wanted to destroy, and often did, and then they would buy him out, and up went the prices again. This whole chapter will attract the FTC and DOJ. It is not like two competitors, each who could supply the whole market competing, as then a meet price strategy is needed to maintain share. This is a definite predatory strategy. Bill

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next