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Politics : Formerly About Advanced Micro Devices

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To: Pravin Kamdar who wrote (58088)5/13/1999 11:31:00 PM
From: Process Boy  Read Replies (1) of 1573678
 
Pravin - <I don't understand why the FTC can go after American Airlines for lowering prices in a market that they dominate to put Vangaurd out of business, but can not see that Intel is doing the same thing to competitors in the the x86 business. No matter.>

"We'll be as competitive as we need to be at the low end. We've always made money on the Celeron, it's a profitable product for us. You can't sell below cost -- it's illegal in the US. We don't aim to squash anybody, we aim to be competitive."
Paul Otellini as quoted by The Register 5-13-99

Answer: the FTC concluded, as Paul Otellini states, Intel is responding to the competition, and is making a profit on its Celeron (read, Value Segment) line. Out of curiosity, what would you have Intel do when a competitor states they are going to undercut their prices by 25%, stand by and watch, or respond?

PB

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