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Technology Stocks : Intel Corporation (INTC)

INTC 35.40

-0.4%

10:41 AM EST

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To: Scumbria who wrote (67204)	10/22/1998 7:59:00 PM
From: Tenchusatsu	Read Replies (1) of 186894

<We've been through this before. Intel sets the pricing. AMD sells at the highest prices their customers will accept.> You have it backwards. Originally, Intel sold at the highest prices their customers will accept. Then AMD came along with its promise of a "25% discount" (which they later withdrew). That made OEM's ask Intel, "AMD gives us this part for $100. Can you give us yours for $120, instead of the higher price you were asking before?" Intel's own late reaction to the sub-$1000 market should prove to you that AMD was the one who first set these low-ball prices. Determined not to make the same mistake again, Intel now seems bent on pre-empting AMD's pricing strategy at every turn. But the pre-emptive price cuts on Intel's part never occured before AMD's low-ball strategy. Fred is arguing that AMD didn't need to price their products so low, and in hindsight, I agree with him. But it's hard to guess whether AMD would have done the exact same thing had they had more competent leadership instead of a CEO with an ego and an obsession. Tenchusatsu

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