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

To: dale_laroy who wrote (70157)	2/2/2002 4:17:29 PM
From: Epinephrine	Respond to of 275872

RE:<What you are overlooking is that, without AMD second sourcing the x86, the 8088 would not have been used in the IBM PC. And, without the 8088 being used in the IBM PC, AMD's "freeloading" would not have been an issue at all.> That may be true but that doesn't mean that Intel had to carry AMD forever. There is no rule of business ethics or even guideline of morality that states that when a customer forces a constraint upon you (second sourcing) and that customer eventually loses the clout to enforce that constraint that you must continue to labor under such restraint. Intel did not have any inherent obligation to continue to allow AMD to second source besides an agreement that was struck largly as a gentleman's agreement without the companies lawyers even being majorly involved, Intel broke the agreement in an underhanded and devious way and you can look down on that but AMD really shouldn't have been so naive. That is in fact actually what the judge himself said in the arbitration, citing Intel for unfair play, but also citing AMD for being 'starry eyed' and not developing a viable alternative in time. Basically AMD just assumed the gravy train would go on forever. (even in the face of Sanders crude rhetoric and taunts) Epinephrine