The question isn't "Can AMD sell everything they make?" because we all know the answer to that question. Rather, we should be asking "Can AMD sell everything they make and make a profit?"
Now before Scumbria pops in here and whines "Intel is trying to crush AMD with predatory pricing," let's get a few facts straight. I think it's quite clear now that Intel is the one in control of the pricing structure. Most of us can agree on that. Intel is dropping prices in an effort to regain marketshare from AMD, or at least to protect against future loss of marketshare. The problem is that AMD is willing to starve itself to death as long as it can keep its marketshare.
So why should Intel drop prices in the first place, if it's clear that AMD will do whatever it takes to keep marketshare, even at the expense of profits? Shouldn't Intel just keep prices high, give AMD some breathing room to make a profit, and let everyone make money and be happy?
No, because it isn't that simple. How does the saying go, "Give 'em an inch, and they'll take a mile?" Let's say, for example, that Intel holds prices steady for a while, allowing AMD to keep its own prices at a healthy level. It would then become *much* easier for AMD to low-ball Intel in the future by, say, charging extremely low prices for the K7. Then the battle in the PC market could turn ugly once again.
Comments are welcome, except those which consist of nothing but immature one-liners ...
Tenchusatsu |
