Formerly About Advanced Micro Devices Message Board

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Politics : Formerly About Advanced Micro Devices

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To: Scumbria who wrote (48645)	2/5/1999 2:18:00 AM
From: Fred Fahmy	Read Replies (1) of 1572507

Scumbria, <Intel is using their Xeon profits to try and drive AMD out of business. Do you dispute this statement?> First, there is nothing illegal or unethical about trying to weaken your competition. Do you deny that AMD was trying to take market share away from Intel by undercutting Intel's prices?? No, I don't think Intel is trying to drive AMD out of business, I think they are trying to gain back share. Using Xeon to provide a favorable overall ASP mix while being aggressive at the low end is not only totally legal, but good business sense. Intel's job is to maximize profit dollars for its shareholders. Dealing with competition is part of that job. If your competition takes share away (by continually vowing to undercut your prices by 25%), then it should be fully expected that you will take whatever legal steps are required to gain share back. That is what Intel is doing and they are doing it quite well and with increasing overall margins. Nice isn't it. Instead of being so emotional and stubborn you should be more rational and rethink you investment decisions. FF

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