WHO IS KIDDING WHO? <G>
I agree with your post, but don't you agree that Intel's current ASP and earnings 'pain' (if they even feel it) is lessened considerably by the likelihood of this scenario: that the worldwide penetration of computers and people who are comfortable using them only strengthens their base for future sales. Essentially, while Intel may be dropping prices faster than if they were the only supplier, they are paving their own road by playing the sub $1k game.
Much like the auto inductry, computers will always 'wear out' (in this case, the technology will become insufficient to participate in the information, entertainment, communication, etc. activites ) and require replacement/upgrading. Intel believes they can continue to dominate at any level, and will always try to drive demand through innovation, price, brand name, etc. In other words, the world's going forward, not standing still. And Intel feels they can beat any competitor in the x86 processor business, at any price.
Randy |
