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Technology Stocks : Intel Corporation (INTC)
INTC 34.72-2.3%3:59 PM EST

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To: Fred Fahmy who wrote (74508)2/25/1999 9:29:00 PM
From: Bill Jackson  Read Replies (2) of 186894
 
Fred, Jerry may be incompetent or not, but AMD's efforts have dramatically reduced prices in the sector since they caused Intel to drop prices to destroy AMD. AS to whether or not this is antitrust...let the courts decide, they can gather price records etc to show what if any draconiam steps Intel took outside of the bounds of law. What ever those steps were they cost Intel $8 billion per quarter profits. A picture is worth a kiloword so draw a graph of prices with no AMD at all and compare them with what we have at now, this will give you an idea of the magnitude of thoe profits foregone by Intel during this crush AMD effort. Take the price decrements in areas where AMD had no competitive chip, say in 386 and 486 time and note the quarter by quarter rate of decline in the future generation, of 486 when AMD made only 386 and Pentium when AMD made only 486 and compare that with the scenario we have today to see the real losses Intel took to try to kill AMD.
If you study the oil and steel empires of the late 1800's and early 1900s you will see a parallel. Intel has tried to act in provacy with non disclosure agreements to hide pricing variances and attempts to cut of users if they bought AMD. This is all coming out as we speak. The time frame is so slow that AMD may not live long enough to see the final act...but it might as the major box makers seem dedicated to give them market share.

Bill
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