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To: Scumbria who wrote (40907)	4/26/2000 9:31:00 AM
From: Dave B	Read Replies (1) \| Respond to of 93625

Scumbria, Last year, during the K6/PII wars, Intel dropped their low end prices down to the $50 dollar range, but the high end remained up around $600. There are a significant number of buyers who will pay for performance. We're talking about the high-end processors in this example. How many people would pay for a 1Ghz Athlon if Intel was only charging OEMs $10 for the PIII 800 processor? Not many because the price/performance curve would skew so much toward Intel. AMD would have to lower prices and sacrifice profitability. Do you really think Intel is going to sit back and let AMD get a foothold in the high-end processor market without responding forcefully? Again, this isn't just about technology, this is about business. Intel could cut their margin to the bone and still make money while forcing AMD to sell below cost. Dave