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

To: fastpathguru who wrote (259520)	4/7/2009 12:36:38 PM
From: Tenchusatsu	Respond to of 275872

FPG, > A quick summary of my interpretation of AMD's accusations is that ... ... Intel has too much market power in your eyes and therefore any rebate it offers is by definition a "bribe" and "corrupt." Fixed. Tenchusatsu

To: fastpathguru who wrote (259520)	4/7/2009 1:14:24 PM
From: Saturn V	Read Replies (2) \| Respond to of 275872

AMD deserves to be able to sell their products into a market that is not corrupted by rebates that would essentially be bribes by Intel to the OEMs that effectively coerce them into reducing or excluding AMD products. .. I have a problem with this statement.You and AMD are stating that any kind of a Volume Discount, or Rebate is a Bribe. To you and AMD that is "unfair", and AMD "deserves better". Sorry, Life is unfair in more ways than one. People need to get over this entitlement mentality. Compete on giving the customer a better product or value, and think out of the box. AMD did a good job on the first Opteron exploiting Intel's blind spots, and profited handsomely. AMD does have a reservoir of good will, and customers want to keep AMD around as a foil to Intel, but in a fragmented computer market place, customers value their own profitability and not AMDs. That is an unfortunate fact of Life. Rebates are not illegal, as long as Intel is selling above its marginal cost. Unfortunately for AMD, Intel marginal costs are a lot lower than AMDs costs. AMD is trying to address its cost structure by the new foundry concept, but success on that front is questionable. Coercive threats or contracts by Intel are illegal, but I have not heard of any evidence of that in the US.