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Technology Stocks : Intel Corporation (INTC)

INTC 35.71

-0.6%

2:39 PM EST

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To: stak who wrote (67162)	10/22/1998 5:46:00 AM
From: Fred Fahmy	Read Replies (2) of 186894

ustak, <If "anyone" can do it then you must have some examples ready to list. How about 2 or 3 for reference? > Because most companies have profitability as a goal. That's exactly my point. Most companies who realize that the only way they can compete is to bleed red ink quarter after quarter and year after year would come to the conclusion that this strategy is not in their best interest. It's very rare indeed to find a company like AMD which is hell-bent on sticking with a proven losing strategy. Of course, Jerry is laughing all the way to the bank at the expense of AMD shareholders. Our tech company (which shall remain nameless) has successfully gained market share from our industry leader (who had 85% or better market share and tremendous brand recognition) without a significant price advantage. You are dead wrong if you think cut-throat pricing is the only strategy to gain market share. Unfortunately, like you, AMD believes this is the only possible strategy. Wendy's has gained and continues to gain market share at McDonald's expense with equivalent pricing. The Japanese auto makers gained market share (via quality) from the US car makers while actually selling at higher prices for the same class of car. <AMD's stealing of market share from Intel is truly a remarkable feat.> I'm glad you think so. It has been my observation that many AMD investors are easily impressed <gg>. I'm not sure all long time AMD investors are so impressed. After more than a decade AMD has not appreciated at all. What is really remarkable is that given this track record (much of which was during the greatest bull run in history) investors are still willing to trust Jerry with their money. Like Jerry always says "this time is different" <gg>. <There's not many times a competitor can go head to head with a behemoth and steal market share without some kind of advantage based not on price.> There is a big difference between "some kind of advantage based on price" and attempting to stay 25% below you competitor. If AMD's products are as great as Jerry's followers would have everyone believe then a 10% difference should have been sufficient to gain share. FF

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