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Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: Gopher Broke who wrote (60872)	10/29/2001 3:34:12 PM
From: hmaly	Read Replies (1) \| Respond to of 275872

Gopher Re.. I agree with what you are saying, except for fixing the 70-30 split. The balance should come about by the companies trying to maximise profits and not, as currently, minimizing market share losses. If that were the case then we would probably have the 70-30 split for now, but it would not be a result of price fixing.<<<<<<<<< Almost every corp. tries to run at 80% capacity. More than that leaves you vulnerable to shortages, such as Intel had last yr.; and less can eat into profits. That isn't necessarily price fixing, and every corp. does it. Even Coke and Pepsi do it most of the time. I think the real problem recently has been that Intel were so paranoid about the P4 transition stalling that they reacted with excessive cuts. <<<<<<< Frankly, a lot of it had to do with the shortages, and Rambus; and the simple fact that P4 wasn't as well accepted as Intel hoped. This diluted the normal 25% price premium Intel was able to charge previously, ending with AMD gaining market share.