SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?


To: fastpathguru who wrote (259398)4/3/2009 4:20:31 PM
From: Elmer PhudRead Replies (1) | Respond to of 275872
 
Tit for tat... Intel cannot raise their prices because that would open the door for AMD to increase prices and fill their fabs with a higher mix of parts. Increasing revs lead to increasing capacity, increased sales, etc. etc. etc... And the long-term-result is dimished market power for Intel.

Intel sells it's products at a profit and the consumer benefits as a result by those lower prices. It is my understanding that the law in the US is intended to protect the consumer and in this case the consumer has benefited greatly.

If I understand the Law correctly (Pete please advise) it is not illegal to have a superior product at competitive prices as long as Intel does not sell at a loss. The fact that AMD has uncompetitive products at higher manufacturing costs is not Intel's fault but rather the result of bad decisions on the part of management.

If we are to design the Law to protect competition rather than the consumer, then there is no penalty for incompetence, in fact it is rewarded, and AMD would surely prosper.