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To: EricRR who wrote (9870)	9/22/2000 12:12:47 PM
From: AK2004	Read Replies (1) \| Respond to of 275872

Eric I do not think so. You are very right about raging war in retail but there is no war in commercial sector. When higher volume t-birds would fly in and compaq would feel comfortable in putting them in business computers then the real war would start. And the blood (hopefully intel) will flow..... Regards -Albert

To: EricRR who wrote (9870)	9/22/2000 2:03:51 PM
From: RDM	Respond to of 275872

Does this mean that Ford will have to reduce prices? There is also the issue of can GM reduce there prices to those anywhere near Ford and maintain their stock price. It is a no brainer for the gorilla to torch market segments which are insignificant from a profit and revenue basis if it keeps the adversary at bay. However, for those markets that are the core of company profits and sales the gorilla cannot attempt to damage to the competition with price reduction without doing more damage to itself. Intel still is project a very high gross margin of >60%. AMD success to date has been based on margins much lower than this. For Intel to reduce their margins to match AMD margins would result in an Intel profit and stock price slide that would make this little "20% market correction" seem trivial by comparison. The gorilla has no choice but to "grin-and-bear-it" rather than shoot itself in the foot.