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Technology Stocks : Intel Corporation (INTC)
INTC 35.02+2.0%11:14 AM EST
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To: Maxwell who wrote (65470)9/26/1998 7:01:00 AM
From: Fred Fahmy  Read Replies (1) of 186894
 
Low Priest,

First and most important, when Intel cuts prices they still make obscene profits. Second, it is AMD's flawed strategy of insisting that they remain 25% below Intel's price that has accelerated AMD's financial ruin.

Perpetuating a price war against an industry giant is a foolish strategy which has delivered very predictable results, i.e. losses is 7 of the last 9 quarters including the last 4 quarters. In fact, AMD's brilliant strategy generated huge Q1 and Q2 losses, even by their standards <ggg>. The last quarter was the biggest loss in 10 quarters for AMD. Q1 was the second biggest loss in 10 quarters.

AMD isn't swimming in anything. They're drowning in red ink.

FF
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