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

To: Dave who wrote (149162)	11/22/2001 1:23:45 PM
From: Paul Engel	Read Replies (2) \| Respond to of 186894

Dave - Re: "if AMD does line up a foundary to fab some of its uP lines, I guess the Duron is one, is not good news for Intel. AMD will cause Intel to drastically reduce their ASPs for their "older" chips, reducing Intel's profits" No - the cost for AMD to make DoodleWrongs at a foundry will not be significantly lower than they can produce them internally. It may, in fact, be higher. AMD is always willing to sell their CPUs below cost - but a foundry will ALWAYS make sure it sells its wafers to AMD at a PROFIT to the FOUNDRY. AMD must then factor in the REAL COST of their CPUs. Intel sells it CPUs at higher prices than AMD simply because they can - and they CAN for a variety of reasons. First and foremost, Intel's procescors are better - they don't crash and exhibit weird compatibility anomalies as AMD CPUs are widely reported to suffer. People pay more for quality - you don't see Mercedes Benz cars selling for the cost of a Hyundai. Paul