Intel Corp (INTC)

[wbmw]

Intel can also refuse to lower the price, and the OEM can choose to buy from Intel's competitor. If the competitor's product is lower performance or less efficient, that goes along with that choice.

>> I guess Intel didn't have that option.

Intel always has this option, and in fact many cases has claimed to use it. In many earnings conferences I have heard them use the phrase "walking away from some business", which essentially means letting AMD take the win at a lower price.

Other times, Intel will price compete and win the sale, and other times they will hold firm and win business on the merit of their design. I don't think you can make a case that any one of these isn't a standard way of doing business.