[IP] Intel monopoly keeps chip prices down say analysts
Begin forwarded message:
From: "Damien V. Del Porto" <damien@xxxxxxxxxxxx>
Date: August 26, 2005 9:34:30 AM EDT
To: dave@xxxxxxxxxx
Subject: Intel monopoly keeps chip prices down say analysts
Hi Dave,
Thought this article (and the two assertions by analysts below) would
be good fodder for IP. The first assertion seems to cover the
improbable case where AMD wakes up one morning with an extra 30% of
the market and the second completely ignores any positive benefits
(in terms of regulating the marketplace) that might accrue were the
case to be resolved in AMD's favor. There is a third more-reasoned
assertion that I think might be true (didn't want to reprint more of
the article than what is listed below).
Regards,
Damien
"PC companies may like the idea of more competition, but Intel's chip
choke hold has helped keep the prices down, says Forrester Research
analyst Simon Yates. If Intel loses a large chunk of its chip
business to AMD, some of its manufacturing capacity will go unused
and it will still have research and other fixed costs to meet,
leading to an overall increase in the costs per chip. This may offset
any competition benefit, Yates explains."
"Pointing to the $3.2 billion in damages Intel might have to pay if
it loses the lawsuit, Gartner analyst Ken Dulaney also predicts
higher-priced PCs. "This lawsuit is a tax on end users," he says.
"When a new Intel processor comes out, let's say the target price was
$465 for that chip. So maybe they make it $468 [to pay the judgment
costs]." The markup to the consumer buying an Intel-based system may
be a bit higher, though that person may not be aware of it. "One way
or another, users will wind up paying for it," Dulaney says."
Full Article:
Does Intel's Dominance Hurt Consumers?
By: Carla Thornton
http://news.yahoo.com/news?tmpl=story&u=/pcworld/20050826/tc_pcworld/
122249
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