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To: Gottfried who wrote (29252)	3/10/2006 1:27:18 PM
From: Donald Wennerstrom	Read Replies (1) \| Respond to of 95936

Intel says will fight AMD on quality March 10, 2006 12:32:40 (ET) HANOVER, Germany (Reuters) - Intel Corp. (INTC,Trade) will fight off inroads into its market share by rival Advanced Micro Devices (AMD,Trade) with a quality offensive, not by cutting prices, Intel's European sales chief told Reuters on Friday. "We can cut prices or bring out better products. We prefer the second option," Juergen Thiel told Reuters in an interview at CeBIT, the world's biggest IT and telecoms trade fair. "Of course, our competition doesn't sleep," he added. Intel, the world's biggest chipmaker, acknowledged this week it was under "tremendous competitive pressure" from AMD after it warned last Friday this quarter's sales would be lower than expected, partly because it lost more market share to AMD. It said, however, it was reversing a trend of making chips that guzzle more power and that it expects to regain its footing when it launches new processors in the third quarter. AMD, which at one time merely mimicked advances by its larger rival, has turned the tables in recent years with innovations such as putting two processing cores on a single chip, allowing it to handle multiple tasks more efficiently. Intel still sells almost four times as many chips as AMD for desktop PCs, and nine times as many for laptops.