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Non-Tech : Amati investors

AMTX 1.470

-5.8%

Dec 12 9:30 AM EST

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To: Trey McAtee who wrote (29322)	11/24/1997 11:53:00 PM
From: Cliff Wood	Read Replies (1) of 31386

<Specialties vs. Commodities> Great marketing and branding are a part, but not necessaryily all, of what well managed firms use to differentiate their products and to make them specialties capable of generating 58% gross margins. If Intel is selling commodities, then everthing is a commodity. Only an idiot would get into a price war without knowing he/she had a cost advantage. TXN is very well managed. Learning curve pricing is based upon the expectation of an improvement in productivity as experience is gained in the large scale production of the product. The essence of competition in business is a race for improved productivity in all aspects of the enterprise. If my company improves its productivity faster than yours and the anticipated improvement is reflected in a dynamic pricing strategy, we don't choke you, we just never allow you a chance to get a deep breath of air and you wither away. As I said before, TXN wrote the book on learning curve pricing during the 1960's. As Casey Stengel would say, "you can look it up". Now lets get on to something that will make us some money. Rgds: Cliff

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