Replies to post #37641 on Intel Corp (INTC)

[Tenchu]

Alan, good post. I took your words to the SI Thread of Moderation. They're still under the illusion (led by Mas and backed up with plenty of "recommendations") that Intel started the price war.

Tenchu

[jhalada]

Alan,

So if I understand this correctly...
Intel gained revenue share but lost unit share,
while AMD gained unit share at the expense of revenue share.
Now who is engaging in a price war here?

AMD is reciprocating what Intel unilaterally started.

For comparison, from Q4 2005 to Q4 2006, Intel has gone from weak product portfolio to strong, PC market is surging, but Intel revenues are down 5%, Operiating Income is down 55%, Net Income is down 39%, EPS are down 35%.

Intel chose much lower level of profitability for the CPU industry. It didn't have to be that way, and still, it didn't stop AMD from selling out its production for the year anyway.

Intel left probably $2B on the table in Q4 alone to fight this price war. That, in order to deny its competitor $200M...

Joe