Intel Corp (INTC)

[Maui]

Tenchu,

Yes, Commoditization did contribute. But should it have contributed so much?

Maybe the discussion could be:
What if Intel had jacked up the ASP by $20-$30 starting last year when economy was better and AMD was messing up with everything? Maybe AMD would have jacked up the price too and breakeven and maybe behind the scene have them back off from these lawsuits. What if Intel do it now? Would people in emerging market not buy computer? Would businesses use PDA and cell phones instead or delay their purchase? What choice do they really have (I am speaking for Investors, not consumers right now)?

Maybe Intel and Amd have though about it all and concluded that this is the only way to go. But then, sometime they (executives) are too obsessed with screwing each other. In early/mid 90's, Andy Grove and Sanders disliked each other so much, that someone (Barrett, if I remember right) else acted as a peace-maker with their lawsuit - whcih could only benefit both companies.

I gave an example of Oil companies earlier. The breaking point seems be around $5/gal in US, but they have still managed to jack it up from ~$1.80 to $4.60. Aren't they all finding ways to thrive at the cost of consumers?

Maui.