Replies to post #40647 on Advanced Micro Devices Inc (AMD)

[Dan3]

Re: what happens if Intel decides to take huge market share while sustaining some small losses in flash production in 2005

The losses necessary to do this would not be small. Marginal cost is close to marginal revenue on flash - nothing like CPUs - and Intel would pay a dollar+ in profits for every dollar in revenue they took from AMD.

They might be willing to do this, but it is pretty unlikely, and could lead to a $Billion+ abuse of monopoly lawsuit settlement to AMD before it was all over.

It's one thing to sell CPUs far below normal market when they are still selling above marginal cost. To do this with flash would be a blatant anti-competitive move, against a factory located in Austin Texas.