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bobs10

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bobs10

Re: dacaw post# 58936

Thursday, 07/07/2005 3:46:26 PM

Thursday, July 07, 2005 3:46:26 PM

Post# of 97563
In short Intel had no choice.

Me...

Nicely stated. I don't think most people understand the fixed cost business model all that well. It can be a goldmine when your running at near capacity but it's more like a boat anchor as production drops off. INTC's model needs 80% of the market to maintain margins. Anything less and profits start dropping off a cliff rather quickly.

AMD geting a third of the processor $'s would be a disaster for INTC.


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