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Politics : Formerly About Advanced Micro Devices

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To: Bill who wrote (864382)	6/11/2015 1:43:56 PM
From: combjelly	Read Replies (1) of 1574689

No, I am not kidding. Given a large enough market share, whether or not a company is technically a monopoly is moot. Back in the K7/K8 days AMD had the superior processor. Definitely after Intel introduced the P4. Intel processors sold for significantly more than an equally performing AMD processor. Yet AMD never gained much market share, primarily because Intel abused the market to contain AMD. One of the most important ways was structuring rebates so that unless Intel was in around 80% or more of the sockets, the company didn't get a dime. Given the profit margins, those rebates were the difference between losing money or making a profit. AMD even offered to give HP something like 10k processors for free one quarter and HP couldn't afford to take them. About the only way AMD could break that hold would be to supply 100% of a company's needs. And they just didn't have the production capacity, nor could they outsource for contractual reasons.

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