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Politics : Formerly About Advanced Micro Devices
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To: Tenchusatsu who wrote (58180)5/14/1999 9:56:00 PM
From: kapkan4u  Read Replies (2) of 1572258
 
< 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.>

So you think it makes more sense for Intel to weaken AMD until a stronger company acquires them? How will then Intel have easier time with K7 produced by TI or IBM? Please explain.
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