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To: AK2004 who wrote (153489)1/2/2002 3:31:56 PM
From: Dave  Read Replies (2) | Respond to of 186894
 
albert,

This is the key...

If increasing marketshare leads to higher margins, either because of economies of scale driving down costs or increased market power driving out competitors, it will lead to higher value

AMD's quest for market share did not grant AMD higher margins thereby increasing value. Instead, AMD's quest for market share can be summarized by this...

If the increase in the market share is accompanied by lower prives and profit margins, the net effect on value can be negative