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

To: Dave who wrote (149217)	11/22/2001 9:03:34 PM
From: Tony Viola	Respond to of 186894

As I recall, AMD starting the price battle by lowering their prices. Intel countered and lowered theirs, also. AMD cannot continue to lower their prices, instead AMD has to find ways to lower both their fixed costs relating to producing uP and lower the incremental cost of each uP. They need to either figure out how to do that, or find a market niche' in order to regain profitablity... Good memory. The droids keep saying it was Intel that started the price war.

To: Dave who wrote (149217)	11/22/2001 9:57:00 PM
From: Bill Jackson	Read Replies (2) \| Respond to of 186894

Dave, A war needs two to battle. AMD came along a slight bit under Intel, so Intel dropped their price to kill AMD. Had Intel kept their price up AMD would have gotten a few % more, because that was all AMD could make. AMD was totally unable to supply even 20% of the market in those days. Now AMD can supply about 32-35% flat out, so Intel could add $200 to each CPU and so would AMD. In a few years they would both make a bundle. Intel wants to fine tune prices so AMD loses and Intel profits. A situation that can have one ending(unless AMD cross subsidizes with flash). Bill