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Politics : Formerly About Advanced Micro Devices
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To: Bill Jackson who wrote (50998)2/25/1999 9:22:00 PM
From: Tenchusatsu  Read Replies (1) of 1572099
 
<Elmer, You seem totally ignorant of the facts.>

You haven't shown us any facts, Bill, only a flawed argument. We've all heard the "Intel loses ten dollars for every dollar that AMD loses" theory, which is totally ludicrous.

Why is it ludicrous? Because it assumes that the computer market grows at a constant rate regardless of prices or competition. In other words, because of AMD's presence, the computer market is growing faster than if AMD hadn't shown up. But AMD is sacrificing its own profitability in order to help that pie grow larger and larger.

In the (paraphrased) words of Jim McMannis, "Loss of marketshare to AMD is probably a foregone conclusion, but the pie keeps growing." Do you think the pie would have kept growing that fast without AMD and the emergence of cheaper computers?

Tenchusatsu
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