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

To: Tenchusatsu who wrote (251960)5/19/2008 9:58:01 AM
From: pgerassiRead Replies (1) | Respond to of 275872
 
Dear Tench:

If a company can never sell below marginal cost, then anytime a competitor can not give away any significant number of units away free proves that the effective pricing structure on the company in question is below cost (zero is always below cost), period! No matter how you slice it, 840K units is a significant amount in a market that worldwide sells about 3-4 million weekly. In the EU, and many other countries including the US, any pricing structure that effectively leads to this result, is considered anti competitive and runs afoul of antitrust laws. No company can make 840K CPUs for free, not even Intel. Even GE couldn't make 840K 60W light bulbs for free and 60W light bulbs are a lot easier to make and far cheaper than CPUs.

Its arguments to the contrary that are pathetic and absurd.

Pete



To: Tenchusatsu who wrote (251960)5/19/2008 11:11:41 AM
From: fastpathguruRead Replies (2) | Respond to of 275872
 
AMD's argument goes like this: Intel should sell at prices that allow AMD to recoup both their fixed and marginal costs. In what free market should any business ever price their product based on the COMPETITION'S cost structure?

No, elmer's quote referred to an "equally efficient competitor."

I.e. Intel's cost structure, not AMD's.

Like Elmer said, AMD's argument is indeed pathetic.

But Elmer was parroting Intel's brief, which was erroneous.

fpg


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