Re: In Q405 they had over 23% of the market with high margins and an asp just under $100 so I really much doubt the extra statistically insignificant 2% of marketshare is what has caused margins to plummet. Slashing prices *is* the answer to selling less competitive products. Nothing outside of Barcelona will increase margins now for AMD.
You're still thinking discretely. It's not "all or nothing". AMD could price their chips higher without risking *all* their market share. It's hard to tell where the sweet spot is exactly, but there's a way to balance between pricing and volumes without going to extremes. Right now, AMD is at the extreme lowest price / maximum market share side of what's possible. My suggestion is to trade a little bit of market share to stabilize pricing and maximize revenues. AMD doesn't seem to understand that concept. Not sure if you do, either.
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