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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Lee Penick who wrote (41638)	12/6/1997 1:15:00 PM
From: Rob McCauley	Read Replies (2) \| Respond to of 186894

Lee, Intel certainly has the economies of scale and the profits to squash any competition. However AMD and Cyrix have survived all this time. My theory is that PC manufacturers use AMD as leverage to save millions of dollars by forcing Intel to keep cutting prices. If AMD ever went belly up, it would mean Intel would be free to keep prices high. I wouldn't be surprised if AMD is somehow paid to stay in the game. I recommend the book "Co-opetition" by Brandenburger and Nalebuff which covers this and other types of game theory. Rob McCauley

To: Lee Penick who wrote (41638)	12/6/1997 1:45:00 PM
From: Jim McMannis	Respond to of 186894

Lee, AMD may not be able to prosper but they can muddy the water for a while and the boxmakers will help them (just to have alternate suppliers)...but only for a while because Intel always provides a moving target and AMD and everyone else has a hard time catching up. On the other hand, the Sub-$1000 market is a whole new ball game. Intel is but a reluctant participant in that arena. They really want to keep their margins but may give them up to maintain dominance. I know I would. Jim