Replies to post #14522 on Advanced Micro Devices Inc (AMD)

[Not a Short]

"Ok, so then what's the point of comparing equal ASPs for Intel and AMD? Does Intel need to lower prices below AMD's to starve them out?"

No, You've said it yourself many times that INTC gets a premium for their chips. If the premium is 25% then droping the actual price to even is similar to undercutting AMD's prices. But for that to work AMD has to not lower their prices in response.

edit: heh, I see just a message or two later you post this "No one is suggesting that Intel jettison their other businesses and their marketing budget to starve out AMD. Right now, Intel has >$1B profits every quarter, while AMD has tens of $millions in losses. Intel could starve them out by lowering prices to the break-even point. They don't have to undercut AMD."

Can't make up your mind about what it takes to starve out AMD?