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

To: Paul Engel who wrote (77771)	10/29/1999 2:15:00 PM
From: Steve Porter	Respond to of 1572154

Paul, Thank you for clarifying Intel's view on the situation (or at least their likely mind set). Steve

To: Paul Engel who wrote (77771)	10/29/1999 2:34:00 PM
From: Charles R	Read Replies (1) \| Respond to of 1572154

<A market fragmented by 2 or more suppliers, each holding a small fraction of the overall market, results in stagnation - due to lack of real profits for future investments.> A single player in a $20B+ is an unstable concept. Most healthy markets, technology or otherwise, have 2 or 3 major players - the leader is always the most profitable but the other two make money too. Also, stagnation occurs if there is only one player in the market. Healthy competition always fosters growth. What is your argument on why there will be "lack of real profits" or "stagnation" with 2 or 3 players?

To: Paul Engel who wrote (77771)	10/29/1999 2:56:00 PM
From: RDM	Respond to of 1572154

<A market fragmented by 2 or more suppliers, each holding a small fraction of the overall market, results in stagnation - due to lack of real profits for future investments.> I wish to take exception to what you said. Firstly, two suppliers may form a duopoly which is quite different than the case of three suppliers or more. With two suppliers margins may not suffer much in the long run. Second, many people propose that only one supplier in a market will stagnate the market by limiting the potential overall market size due to a natural temptation to overprice the market by the monopolist. The monopolists products products may not well serve the low end. There was some evidence that Intel was doing just that two years ago. The biggest participant in the new cpu market's expanded size brought about by lower pricing and competition is likely Intel.

To: Paul Engel who wrote (77771)	10/29/1999 3:03:00 PM
From: Kevin K. Spurway	Respond to of 1572154

Re: "A market fragmented by 2 or more suppliers, each holding a small fraction of the overall market, results in stagnation - due to lack of real profits for future investments." Are you serious? Are you sure your first name is Paul Engel? Or is it Friedrich Engels? This is the type of horsesh*t that the phone company spouted for years in order to keep its monopoly. Of course, as anyone who know anything about the history of industrial organization understands, it's complete bull. Kevin