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

To: wbmw who wrote (247871)	2/15/2008 6:05:23 PM
From: pgerassi	Read Replies (1) \| Respond to of 275872

Wbmw: Nice to see you have just shot your own feet. 1. "... if they were in a monopoly position, they would control the segmentation, ..." To control segmentation, you must control supply to each segment and make each CPU greatly tied to its intended segment. So you are saying that in mature existing markets, Intel will force maximal prices. If you are controlling supply to a market segment, you are controlling supply, period! 2. "... But I have been arguing that the microprocessor market is elastic, and Intel is limited in their pricing headroom. ..." You can't have controlled supplies in an elastic market. It defeats the purpose of maximizing revenue. 3. "... Controlling supply only limits the existing market, and completely alienates new users. ..." You think that new users won't notice what Intel does to existing mature markets? They would be alienated by that and go to CPUs where many competitors exist, like ARM or MIPS. Why stick your head in a noose? 4. "... Instead of Extreme Edition parts being 10% or 20% faster than a $200 part, Intel could make them 2x faster (using future launches like Nehalem), ..." There is no incentive for a monopoly to do this. If Nehalems are 2X as fast, then they will be priced accordingly, 2 times what Extreme Editions are. They are there to make money and milk the market for as much as it can. The only reason to price them as much is so they can stop making Extreme Editions because Nehalems are cheaper to make. And that will only occur when Nehalem production is large enough to take over completely. Nice for you to shoot yourself in the feet 4 times blowing your arguments completely away. Pete