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To: Fred Fahmy who wrote (66940)10/17/1998 4:28:00 PM
From: Tenchusatsu  Read Replies (1) | Respond to of 186894
 
<Explain exactly and specifically how Intel forced AMD to maintain a policy of pricing 25% below Intel.>

Hey Fred, if you didn't know, AMD withdrew its promise to price their products 25% below Intel's. Check out this link:

news.com

There's a quote in there that says:

AMD, moreover, has vowed to stay below Intel in price. Because of changes in the processor lineups at both companies, AMD is no longer strictly pricing its chips 25 percent below an equivalent Intel chip running at he same speed, said Dana Krelle, vice president of marketing at AMD.

Instead, AMD is pricing its chips to ensure that a computer built around an AMD will cost less than a system built around the closest Intel competitor.


As for AMD's low-ball pricing strategy, everyone knows that AMD is trying to gain market share very quickly. The question is, do you think AMD will stop it's low-balling strategy once it feels secure in its #2 spot? Or do you think that AMD will not stop until they get to the top, if that's even possible?

Tenchusatsu

P.S. - By the way, thanks to EVERYONE who is currently increasing the signal-to-noise ratio on this thread.



To: Fred Fahmy who wrote (66940)10/17/1998 4:35:00 PM
From: Gary Kao  Respond to of 186894
 
Fred: I'm intrigued. What company do you work for? Sounds like it may be a good company to invest in! Feel free to email me if you are not comfortable with posting it publicly.

Thanks,

Gary

>The tech company I work for is in the same position as AMD vs. Intel. We have been able to gain
market share by offering better value not by pricing 25% below the giant in our industry.



To: Fred Fahmy who wrote (66940)10/17/1998 4:50:00 PM
From: Scumbria  Read Replies (1) | Respond to of 186894
 
Fred,

AMD has shown repeatedly that they simply do not understand how to run a profitable business.

Intel has spent huge amounts of money (billions in R&D and lost revenue) attempting to keep their competitors in non-profit status. AMD sells at a price point they consider optimal. Other competitors, like Cyrix, have to sell at an even greater discount.

Scumbria