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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?


To: Pravin Kamdar who wrote (58088)5/13/1999 11:31:00 PM
From: Process Boy  Read Replies (1) | Respond to of 1573439
 
Pravin - <I don't understand why the FTC can go after American Airlines for lowering prices in a market that they dominate to put Vangaurd out of business, but can not see that Intel is doing the same thing to competitors in the the x86 business. No matter.>

"We'll be as competitive as we need to be at the low end. We've always made money on the Celeron, it's a profitable product for us. You can't sell below cost -- it's illegal in the US. We don't aim to squash anybody, we aim to be competitive."
Paul Otellini as quoted by The Register 5-13-99

Answer: the FTC concluded, as Paul Otellini states, Intel is responding to the competition, and is making a profit on its Celeron (read, Value Segment) line. Out of curiosity, what would you have Intel do when a competitor states they are going to undercut their prices by 25%, stand by and watch, or respond?

PB




To: Pravin Kamdar who wrote (58088)5/14/1999 1:05:00 AM
From: Elmer  Respond to of 1573439
 
Re: "I don't understand why the FTC can go after American Airlines for lowering prices in a market that they dominate to put Vangaurd out of business, but can not see that Intel is doing the same thing to competitors in the the x86 business. No matter."

The FTC claim is that AA was selling tickets at a loss. Intel isn't doing that, only AMD is.

EP