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Technology Stocks : AMD:News, Press Releases and Information Only!

AMD 233.54

-1.7%

3:59 PM EST

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To: Petz who wrote (6512)	6/2/1998 11:38:00 PM
From: Elmer	Read Replies (1) of 6843

<Its called "predatory pricing" by DOJ. If Intel is truly selling Celerons to Taiwanese boxmakers for $75 they are breaking the law by using their monopoly profits in one market (high end PC's) to attack a new market (sub $800 PC's) in which THEY ARE CURRENTLY A MINORITY PLAYER.> I haven't seen anywhere that the DOJ is accusing Intel of "predatory pricing". In fact, at $75 it would be easy to show a profit. Why would Intel have to charge depreciation to the Celeron? With such high volumes on their highend chips, there is little depreciation to go around. Intel is currently producing 233 & 266mhz Celerons so it seems that they are coming from their .35u process, which is already fully depreciated. The Celeron is in fact a N-1 product, meaning it is using the older non leading edge process and equipment. It's a coattails product where the R&D was spent on the highend version. The cost will showup as very low. EP

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