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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 220.89+3.1%12:08 PM EST

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To: fastpathguru who wrote (259398)4/3/2009 4:20:31 PM
From: Elmer PhudRead Replies (1) of 275872
 
Tit for tat... Intel cannot raise their prices because that would open the door for AMD to increase prices and fill their fabs with a higher mix of parts. Increasing revs lead to increasing capacity, increased sales, etc. etc. etc... And the long-term-result is dimished market power for Intel.

Intel sells it's products at a profit and the consumer benefits as a result by those lower prices. It is my understanding that the law in the US is intended to protect the consumer and in this case the consumer has benefited greatly.

If I understand the Law correctly (Pete please advise) it is not illegal to have a superior product at competitive prices as long as Intel does not sell at a loss. The fact that AMD has uncompetitive products at higher manufacturing costs is not Intel's fault but rather the result of bad decisions on the part of management.

If we are to design the Law to protect competition rather than the consumer, then there is no penalty for incompetence, in fact it is rewarded, and AMD would surely prosper.
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