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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: herb will who wrote (107744)	8/19/2000 4:11:57 PM
From: Elmer	Read Replies (4) \| Respond to of 186894

Re: "Dan3, I think you AMD guys should start thinking about the situation regarding AMD cutting prices as the article below reflects" Couple this with AMD's apparent yield problems and you have a potentially serious situation. Unless someone repealed the law of supply and demand, it would appear that even with yield problems AMD has more supply than demand. Can someone tell me in what way AMD's actions differ from a price war? EP

To: herb will who wrote (107744)	8/19/2000 5:33:36 PM
From: Robert Salasidis	Read Replies (3) \| Respond to of 186894

Just a thought. AMDs recent price cuts could all be a preemptive strike against Intel. I am sure Intel will have similar cuts planned for their P3 line once P4 is released. Intel will likely price cut P3s in order to position them against the Athlon, thereby helping to price differentiate their newer design. We have seen this action successfully in the past. Perhaps AMD is cutting prices in an attempt to capture some extra market share so that when the P3 to P4 transition happens, they will have enough OEMs using their product to not end up with an over supply situation secondary to a sudden lack of demand. Their control of pricing in that situation (long term) would be worse that taking a few hits now. This would of course confirm the belief of AMD that P4 release in volume by Intel is imminent.