"Intel Chief Orders 'Wholesale' Review After Bleak Profit News and pricing to be used to regain market share."
Me...
This would only seem to make sense it INTC has/will have superior product, at least in Otellini's mind. Second, remember AMD can manage to demand a lot better than INTC can. AMD can always cut back on expansion to match demand, but INTC already has the fabs.
As I've said before, I doubt that Hector, given his generally conservative demeanor, would have been pushing so hard for capacity if he didn't already have some pretty concrete uses in mind for what will be produced. Maybe Otellini is really Charlie Brown and Lucy is pulling the football away again?
Anyway, if AMD and INTC do get into a real price war the winner, assuming similar product, will be the company that best utilizes its' resources. That is things like plant utilization, yields, and production costs are going to be of paramount importance.
Of the two contestants, given INTC's slothiness I would be betting on AMD unless NGA is a home run, something I kind of doubt. However, if INTC really gets serious about costs then things are sort of up in the air. I'll definitely start getting worried if INTC announces a RIF of say 20k or more jobs and a management reorg.
Obviously, this isn't going to do either company’s stock's price any good. But then no one really expected INTC to go silently into the night did they? Still, I doubt this will be a thermonuclear war, more like raids into the other side’s territory at points of perceived weakness. On the other hand this may be just what Otellini does best, marketing.
I wonder if Joe Osha has the power to remove Otellini? Sounds like something has changed. Another disastrous quarter was too much for someone to stomach?
