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Why did AMD and Intel start this most recent price war? They did a good job of wounding themselves in the process

In early 2006 when Intel announced its new architecture there was wide expectation that prices would stay constant at launch – Intel was expected to drop pricing only on the Pentium 4 architecture to clear out excess “sell-proof” inventory. In the meantime AMD already won a number of design wins throughout the industry, and it also had plans to finally tip the scales within Dell who (at the time) was a 100% Intel operation. Other than potentially losing the performance crown in the high end sliver, things were looking quite good for AMD.

So, imagine if you will the scenario where AMD and Intel both have equally compelling “good enough” products for the mainstream, and Intel is winning the performance game – this, in a nutshell, is where we sit today.

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By nurbsenvi on 1/22/2007 5:18:53 PM , Rating: 3
Intel ,these days ,doesn't act like a sleeping rabbit it used to be in Pentium 4 era. Instead they are being hyper aggressive.

While AMD is struggling to move to 65nm process Intel keeps hopping despite it's advantages over AMD in terms of CPU Architecture, process and finance.

AMD brings out quad processor Intel one the next day as if they had it in their pouch.

I think Intel wouldn't overlook such a HUGE drop in margin they saw last year.

They must know that AMD won't be able to bring Core beating architecture for a while...

And this may be the best chance to hurt AMD as much as they can.

AMD just bought ATI and has HUGE debt and no major product line up change will happen before fusion (2008?) and Intel knows it.

Why would they miss this and live and let live?




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