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

To: wbmw who wrote (247817)	2/14/2008 4:03:18 PM
From: pgerassi	Read Replies (1) \| Respond to of 275872

Wbmw: You try to make a failed argument that the CPU market is elastic. Then you try to make a strawman out of budgets limiting CPU pricing strategy. When that failed, you try to limit the market to the low end when the original argument is what Intel would do when AMD left the market (one way or another). Even that limited market still fails to be elastic. History shows that the CPU market to be quite inelastic. When Intel had to sell P4s that had built up becoming large inventory, they had to lower prices by half or more to get rid of them. Together they were less than a quarter of output. That doesn't happen in an elastic market. Lowering less than a quarter should double sales. But sales only went up a little even though prices were slashed. Thus by definition, the CPU market is inelastic. It takes a large price change to change the overall demand a little. There is a good reason why as the CPU is a small part of the overall total costs. With the dearth of arguments supporting your failed theories, you send up red herrings. Pete