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


To: Elmer who wrote (66404)12/27/2001 5:43:18 PM
From: survivinRead Replies (1) | Respond to of 275872
 
Re: AMD will have no choice but to continue their predatory pricing in the midrange.

Elmer,

Bad choice of words. FYI, predatory pricing is typically used in the area of antitrust litigation to describe pricing below marginal cost (incl. kickbacks, discounts advertising incentives, etc.) designed to eliminate competitors in the short run and reduce competition over the long haul.

The definition hardly fits AMD, but does apply when intel cuts prices with the intention of sacrificing present revenues for the clear purpose of driving the competition from the market hoping to recover the losses with higher prices at a later time.

In AMD's case, matching intel's prices is a matter of survival and hardly undertaken with predatory intent. Can the same be said of intel's drastic slashing?