Replies to post #37663 on Intel Corp (INTC)

[chipguy]

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

ROFL.

From Q3 to Q4 Intel increased its MPU revenues by 13.2%
compared to 4.2% for AMD.

An extra $2B represents a further 31% increase for Intel.
You think Intel could have raised MPU ASP by 31% plus
another sizeable chunk to counter the resultant loss in unit
sales? Looks to me like you are smoking from the same
crack pipe as mas.

[wbmw]

Re: 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.

This myth of yours couldn't be farther from the truth. Intel was competitively disadvantaged throughout the first half of last year, and in some degree in the 3rd quarter as well. They used the 4th quarter to lift themselves out of the hole they were in from the first half, so it's not comparable to look at YoY as you and the other critics like to do, because it includes all the quarters when they were competitively disadvantaged. On the other hand, Intel's sequential performance beat all expectations, and that's thanks to new products and careful planning.

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

Bull. If Intel kept prices high, they would have still left money on the table because their products were not competitive, and they would have lost at least a third of the total market by now; and instead, AMD would have been raking in close to another $1B in revenue if they could have kept their ASPs high *and* taken a third of the market away (I figure 23M+ units @ $100 ASP, compared to 17M+ @ $75 ASP). They certainly had the capacity to do so.

[Tenchu]

Joe, > Intel chose much lower level of profitability for the CPU industry.

Pure bull.

When AMD lowered prices for PC processors, such as when sub-$1000 became all the rage or when AMD scorched the earth for unit market share in 2001, how come you 'Droids didn't accuse AMD of "choosing much lower level of profitability"?

Now you just want to focus on Q2 2006 and say "Intel started it"? Please, you insult our intelligence.

Tenchu

[alan81]

Joe, explain this to me...
It sounds like you think Intel should raise prices. How is raising prices different than dropping the performance available at each price point?
I think there is a subtle yet important difference in wording here.
Can Intel raise ASP by raising prices? I would say, NOT MUCH.
Can Intel raise ASP by choosing not to sell into the low end market? absolutely! But these are two very different things.
--Alan