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The U.S. DoJ probes graphics makers for antitrust violations

Both AMD and NVIDIA have received subpoenas from the U.S. Department of Justice Antitrust Division in connection with the DOJ’s investigation into potential antitrust violations related to graphics processors and cards. The root of the AMD subpoena is its recent acquisition of ATI Technologies last month, which was approved according to Canadian antitrust laws.


The DOJ has not made any specific allegations against AMD, ATI, or NVIDIA. Both AMD and NVIDIA said that they intend to cooperate with the DOJ in its investigations.


Together, AMD and NVIDIA hold just over half of the entire graphics market, each with about an equal share. Following the news, NVIDIA shares fell 3.6 percent on Nasdaq trade, while AMD shares fell 2.1 percent on the New York Stock Exchange.

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RE: Seriously?
By Sunrise089 on 12/2/2006 1:58:00 PM , Rating: 2
How hard is it for people to try to understand numbers before making a post. If I sell a product for $11 and it costs me $5 to buy it and then $5 to do business (pay my employees, advertise, research new products for the future), my profit margin is 10%. If I raise my price to $12 the next year, that year my profits will have risin 100%. That does not meen I'm making a profit of 100% on the product. I'm actually making a profit of 20%, and that's basically all I can reduce my prices by and not operate at a loss.

Now, let's say I decide I'm going to set my price at a 10% margin on my actual total cost, rather than just deciding to add the dollar to two dollars or whatever. So when my cost is $10, as above, I charge $11. But now say my supplier raises her price to $15, and I still have my $5 additional cost, now I sell my product at $22, and once again show a 100% increase in profits, although I'm making the exact same on each dollar I myself spent. That's the situation the oil companies find themselves in.

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