Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 220.67

+3.0%

11:19 AM EST

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To: Elmer Phud who wrote (259448)	4/5/2009 11:14:44 PM
From: Dan3	Read Replies (2) of 275872

Re: No one has explained why AMD didn't simply match Intel's pricing. It's been explained to you, literally, hundreds of times. Intel wrote contracts such that if a company bought a single CPU from AMD in a given category, that company lost some or all of its Intel discounts - it's average costs were drastically increased beyond those of its competitors. So, even if AMD gave CPUs away for free (and 1 million were offered, at one point) Intel would raise their prices on the Intel chips they had to buy (monopoly that Intel is) such that their average CPU cost (even after averaging in 1 million free chips) would go up. Understanding this requires a knowledge of arithmetic, so I don't expect you to "get it", but if you'll check with an older sibling or adult, they can explain it to you.

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