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Technology Stocks : AMD:News, Press Releases and Information Only!
AMD 213.50+6.2%3:59 PM EST

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To: Paul Engel who wrote (1980)11/6/1997 5:39:00 PM
From: Larry Loeb  Read Replies (1) of 6843
 
Paul,

IF (and I don't recommend this) Intel adopted this strategy, they could, as you noted, possibly drive AMD out of business - or at least drive them in to a vety big hole. (Make that a Bigger Hole).

vs.

Instead, they are turning the screws down slowly on AMD and Cyrix - essentially reducing them to a state of perpetually marginal profitability. In the mean time, Intel can make really good profits that will be re-invested in R & D and capacity expansion.

The first would be an antitrust problem. The second is a viable strategy of maximizing competitive strengths while maintaining a competitive situation - no serious antitrust problems.

Larry
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