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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Tenchusatsu who wrote (63437)	6/26/1999 12:08:00 AM
From: Cirruslvr	Read Replies (1) \| Respond to of 1571415

Tench - RE: "So if Intel were to reduce its prices to match those of AMD, dollar for dollar, clock for clock, then Intel would be initiating a price war because Intel is a leader, and they must give the competition some slack, right?" Historically (or basically when the K6 came out as far as I know), Intel hasn't dropped prices on their higher MHz chips to match the price AMD's chips sell by. So the answer to your question is a BIG, fat Yes (but not to the slack part). Intel with the Celeron matched the K6-2 prices after AMD lowered them. AMD baited them and Intel hooked.

To: Tenchusatsu who wrote (63437)	6/26/1999 12:12:00 PM
From: Kevin K. Spurway	Read Replies (2) \| Respond to of 1571415

Re: "But if Intel does respond with prices that match those of AMD, and a price war is started in the mainstream desktop market, it would be very tough to convince me that Intel is the bad guy here. This is a dumb argument. All you're doing is convincing me that that Athlon that Intel has managed to acquire has them running scared. Fact is that AMD can't ship anywhere near enough K7 to do any damage to Intel in terms of market share, probably for the next nine months at least. Given that this is the case, AMD woud be stupid to charge any less for the K7 than they can realistically get for it. Starting a price war is the kind of thing you do when you want to gain market share, and AMD is in no position to take significant market share with the K7 for quite a while. Re: "So if Intel were to reduce its prices to match those of AMD, dollar for dollar, clock for clock, then Intel would be initiating a price war because Intel is a leader, and they must give the competition some slack, right?" If Intel did this they'd be undercutting AMD plain and simple, becase of the higher infrastructure costs for Slot A, the marketing kickbacks, and the value of the brand name, which Intel spends a lot of money to maintain. The entire reason you spend the money to invest in branding is EXACTLY so you can charge more for the same product than your competition does!! Kevin

To: Tenchusatsu who wrote (63437)	6/26/1999 1:53:00 PM
From: tejek	Read Replies (1) \| Respond to of 1571415

Tenchusatsu: RE: "If intc were to reduce its prices to match those of AMD,dollar for dollar, clock for clock, then intc would be initiating a price war....." I think the issue is not whether intc's prices can match or be at a discount to AMD's prices but rather is intc pricing at levels where they make no profit or actually take a loss on a particular market segment in an effort to drive AMD out of that market. Because of its dominant position and its financial resources, intc can afford to take the $ hit to realize its objective. Operating in this fashion is called predatory pricing and its the way big guys get rid of the little guy. Either American or United Airlines is up in front of the Justice Department on that very issue right now. That is the whining that Sanders was accused of by the intc longs. If it is true, then intc is 'the bad guy'. ted