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To: Maxwell who wrote (1979)11/6/1997 12:24:00 AM
From: Paul Engel  Read Replies (2) | Respond to of 6843
 
Maxwell - Re: " What do you think of this stategy?"

IF (and I don't recommend this) Intel adopted this strategy, they could, as you noted, possibly drive AMD out of business - or at least drive them in to a vety big hole. (Make that a Bigger Hole).

However, Intel's EPS would PLUMMET, not just decline a few per cent.

Instead, they are turning the screws down slowly on AMD and Cyrix - essentially reducing them to a state of perpetually marginal profitability. In the mean time, Intel can make really good profits that will be re-invested in R & D and capacity expansion.

This will keep AMD around to provide some semblance of a competitive market. But it will insure that AMD does not have the wherewithal to mount another serious threat to Intel with a competitive product.

Remember - AMD had to buy their way out of a deep hole two years ago by purchasing NexGen. They may not be able to pull another rabbit out of a hat again - unless shareholders don't mind forking over another $600,000,000 in stock dilution to purchase another "brass ring".

Paul



To: Maxwell who wrote (1979)11/6/1997 12:51:00 AM
From: StockMan  Read Replies (2) | Respond to of 6843
 
Maxwell,
Re -- P233 and K6233 prices.

You guys keep assuming that Intel is cutting prices because of AMD.
When will you get it, that Intel is cutting prices, to sell more CPU's.

You AMDites have ego's as big as Jerry himself. To think that Intel even thinks of AMD when it cuts prices. Its a joke.

Stockman



To: Maxwell who wrote (1979)11/6/1997 10:58:00 AM
From: gpphantom  Read Replies (1) | Respond to of 6843
 
Maxwell,

I think your strategy would be in violation of anti-trust law. Predatory pricing is the issue and is generally defined as the deliberate sacrifice of present revenues for the purpose of driving rivals out of the market. If this were not an issue I'll bet Intel would have employeed your strategy long ago.

Regards, Phil


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