AMD strictly moderated (AMD)

[pgerassi]

Smooth2o:

To even get close to lean and mean, Intel would have to cut $3 billion from expenses each quarter and yet mantain output. At lower output, they would need to cut even more. Do you see the magnitude of the problem? It took a long time for that overhead to build up and its likely to take a long time to come down. If they do it too fast, they will lose the core of their R&D, engineering and process talent. Their first move should be to slice and dice upper management followed by non core activities. You know those that go into that huge money drain labeled "Other". And of course, stop those pesky stock repurchases.

That's what needs to happen because you neglected your cash cow and now its sick and tired. The better policy is to take the short term pain and let it get better, instead of trying to continue output which lowers the quality and thus, the price. Soon it will die and leave you with a lot of bills. Starting a price war is stupid when your competitor is capacity limited with superior products.

Pete