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To: Elmer who wrote (47424)	7/13/2001 2:01:17 PM
From: dale_laroy	Read Replies (3) \| Respond to of 275872

>Now I ask, who can argue with this logic?< It is not logic, it is a fact. Jack Tremiel made it quite clear that Commodore was in a price war with TI even as the Commodore 64 was priced higher than the TI 99/4A. This price war was triggered by TI's actions years ago. Back in the early 70's, the demand for processors to go in calculators outstripped supply, resulting in backorders of several months. Calculator manufacturers, including Commodore, responded by increasing their orders to insure more timely supplies as shortages continued. Eventually, TI shipped the backordered processors at the original order price, just as they entered the market with their own line of calculators priced less than they charged for the processors in Commodore's calculators. Jack Tramiel made it quite clear that the Commodore 64 was payback time for TI. Eventually, he was forced to resign as CEO because of the perception that he was more interested in crushing TI than optimizing profits from the Commodore 64. In the case of the Commodore 64 price war, what defined it as a price war was not that Jack was sacrificing profits for market share. Commodore actually had record profits during this period. It was that he was willing to sacrifice potential profits to inflict losses on a competitor. If AMD slashes their ASP by 10% to realize a 20% increase in unit sales, this is not a price war action, because AMD is increasing revenues. If Intel slashes their ASP by 10% in order to avoid a 5% loss in unit sales, this is a price war action, because Intel is sacrificing profits to retain market share.

To: Elmer who wrote (47424)	7/13/2001 4:58:58 PM
From: Ali Chen	Read Replies (1) \| Respond to of 275872

Elmer, "Man are you guys out to lunch. AMD was gaining market share because of their price war. When Intel fired back you say Intel started it. What a crock of sh*t." You can invent your definitions as long as you want. The World, however, thinks differently than you: News: Intel launches chip-price war ... Computing. Intel launches chip-price war TalkBack! By Michael Kanellos Special to ZDNet April 23, 2001 4:30 AM PT. ... www.zdnet.com/zdnn/stories/news/0,4586,2710790,00.html HardwareCentral - News - Intel Declares Price War With 1.7 ... ... May 25, 2001 - 06:52 EST. Intel Declares Price War With 1.7GHz Pentium 4 $352 Sticker Undercuts Last Week's 1.4GHz Chip Eric Grevstad. ... www.hardwarecentral.com/hardwarecentral/news/3264/1/ Intel launches Pentium 4 price war salvo ... Intel launches Pentium 4 price war salvo. By Paul Dempsey Electronics Times (04/26/01, 3:13 am EDT). ... www.edtn.com/story/OEG20010426S0003 MyeLabs.com ... Intel Cuts Could Lead to Price War Date:4/17/01 8:23:25 AM A large price cut by Intel Corp. is raising concerns of a price war that could squeeze profit ... www.myelabs.com/newsdetail.asp?name=1443 Hotlines news: Chip firms spark off PC price war ... Intel prompted the fierce price war in April, when it slashed prices on its Pentium III and Pentium 4 microprocessors, introducing a 1.7GHz version of its ... www.zdnet.co.uk/pcdir/content/2001/07/news/chip-price.html vnunet.com Intel unleashes cut-price 1.7Ghz Pentium 4 ... It will mean cheaper processor prices across Intel's Pentium III and Pentium 4 ranges and a probable price war with rival AMD, which has promised to match ... www.thechannel.vnunet.com/News/1120879 And some from the past: vnunet.com Intel opens fire in price war ... Intel opens fire in price war By Guy Matthews, Network News [08 Nov 2000] Intel is paving the way for the launch of its Pentium 4 chip by slashing prices on ... crn.vnunet.com/News/1113736 TheView : News : Intel Starts Summer CPU Price War News: Intel Starts Summer CPU Price War. By Dominic Jones July 20, 1999. Intel has signaled ... www.the-view.com/news/0799/2001.html ... and more, about 80,000 references. Any more concerns who started the war? - Ali