Advanced Micro Devices Inc (AMD)

[upc]

gb, intel had a history of dropping prices on certain areas to attack amd while maintaining prices in other areas that amd was not in, in order to maintain margins. Intel's customer is not the consumer, but the OEMs, who are in a low-margin business. They might consider $20-$30 a worthwhile amount, so the question is, why will Intel not pursue this tactic now? I do not think the answer is truly 'inelastic demand'. But I sold my Intel investment today after reading the news about GMs in the earnings release, and I think GM pressure is probably the real answer to the question of 'why no price war?'.

upc