Advanced Micro Devices Inc (AMD)

[out to make money]

Yes AMD should have additional capacity comming online. But they have lots of headroom on margin for Opteron. So they can use the price/demand curve to lower prices on Opteron, to utilise thier capacity.

And Intel will have a difficult time following them as they will be canbilising thier own server market.

Intel have everything to lose in this market, and AMD gains depend entirely on managing the business for profitabilty.

This means not releasing products simply to demonstrate to the world that you have the fastest.



In the memmory market,AMD aim to offer a better package (Long term customer commitment, Stable pricing(I am sure this is high on customers wish list), Technically good product). This means they are ess succeptable to competition on price. If they feel pricing pressure due to increased market capcity, they have to sell "Value Added and complete package" to their customers as being a differentiator, the reason not to switch.

AMD have everthing to gain !