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

To: niceguy767 who wrote (81689)	12/1/1999 9:51:00 PM
From: Bill Jackson	Respond to of 1573003

7, for short:), Price cuts are a grave decision at this time as it will cut intels profits at all levels. What will the Intel SP be if they drop 50% of their profits? So they will have to weight the factors, can they kill AMD with price cuts? Will they hurt Intel mor than AMD? Since AMD has limited production capacity they make let AMD make all they want as AMD will run out of stock and Intel will still fill 60%+ of the market. the Athlexeon will take a year to get full penetration as the buyers will want an extensive qualification period and all AMD will get is some, not all. So I see a period of oligopoly happening with a de-facto sharing of the markets as more profitable than out and out price cuts. AMD might well keep the lead for years as they have a powerful product with many future modifications to keep it at the fore. The Intel culture is very competitive and might in fact drive some creative people away and look what happens. Bill