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Technology Stocks : Intel Corporation (INTC)
INTC 48.72+3.0%Jan 14 3:59 PM EST

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To: James R. Barrett who wrote (74776)2/27/1999 8:01:00 PM
From: t2  Read Replies (1) of 186894
 
I think AMD honestly believes that eventually INTC will capitulate and get out of the low end market entirely. INTC of course wants it ALL which I don't think is going to happen. INTC is no longer a monopoly.

Intel doesn't want out of the low end, it just wants to ensure AMD does not get too profitable. Furthermore, INTC does not want AMD to be a recognizable brand name-----they want it to remain the no-name brand CPU for those want to buy from a "discount store".
Competing at the low end ensures AMD won't have extra cash to throw around for advertising ie starting an "AMD Inside" type of commercial. When you are losing money, there are other priorities such as cutting costs. Too bad!!
They are better off blowing a lot of cash on huge advertising campaigns and suffer bigger losses until they become at least the "pepsi" of the CPU biz.
IMHO, Intel is just too "smart". They want AMD around so that the DOJ won't be after them for a current anti-trust suit. I think the FTC relates to old problems unlike the Microsoft case (which is also related to current activities).
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