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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?


To: Shane M who wrote (64743)7/17/1999 7:04:00 AM
From: Fred Fahmy  Respond to of 132070
 
shane,

<...or should AMD just attempt to price closer to INTC's price and roll with the flow?>

IMO, this is what they should have done all along and this is what they should definitely do with K7. It is my understanding that they plan on pricing K7 more in line with Intel. I think they plan on maintaining an 8-9% gap instead of the 25% gap they tried to maintain on the low end when they declared war on Intel several years ago.

AMD's pricing strategy, not Intel, is responsible for AMD's current problems. I would hope they learned their lesson about antagonizing an 800 lb. gorilla.

Bottom line...price more competitively in all segments, nibble at market share, and take advantage of industry growth. As your products become more accepted and established then you can decrease the pricing gap or even eliminate it.

Usually in a situation like AMD/Intel, it would be Intel who might be accused or predatory pricing. However in this case, AMD has been the one who chose to take the lead in pricing so low.

FF