Formerly About Advanced Micro Devices Message Board

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Politics : Formerly About Advanced Micro Devices

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To: Gary Ng who wrote (36291)	8/24/1998 12:03:00 AM
From: Dale J.	Read Replies (2) of 1572742

Gary, I believe to prove the charge of "dumping" against AMD, NSM would need to demonstrate that AMD is selling below cost and they are selling below cost with the intent to drive out competition and monopolize the market. AMD is clearly in survival mode not predatory mode. They miscalculated Intel's response to competition. As they started to gain market share selling at a price below Intel, Intel responded with aggressive price cuts. AMD then again countered with more price cuts. This is just market forces. AMD's intent is to sell chips at a profit, but the market is forcing them to sell at a discount to Intel. Because they don't have the volume sales, production efficiencies, and the same market segmentation as Intel they are losing money each quarter. JMO NSM is in even worse shape. They really need to sell at a discount to get anyone to buy their product. I saw a large ad. in USA Today for a Cyrix based computer for $399.00 Dale

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