AMD strictly moderated (AMD)

[wbmw]

Re: AMD´s cuts will pressure AMD.

I don't know what's worse, getting hurt by free-falling ASPs, or getting killed by fab undercapacity costs. At least in one sense, AMD can't afford *not* to lower prices, if it means ceding market share to Intel and leaving parts of their fab empty.

I think AMD built up their manufacturing too fast while assuming they could make the penetration in the market with their current products. They completely underestimated Intel's response with Core 2. You are just witnessing the backlash from that mistake.