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[IP] Read the end for sure 00 Intel monopoly keeps chip prices down say analysts (SPELLING CORRECTED)





Begin forwarded message:

From: Newmedia@xxxxxxx
Date: August 26, 2005 3:18:58 PM EDT
To: dave@xxxxxxxxxx
Subject: Re: [IP] Intel monopoly keeps chip prices down say analysts (SPELLING CORRECTED)


Dave:

There are a number of things that are pretty clear . . .

1) AMD is already gaining market share and will likely gain more as its Dresden Fab 36 comes online next year, increasing its capacity 4-5x fold.

2) This week at its IDF, Intel has largely admitted that they have inferior products and cannot match AMD for years.

3) The only alternative that Intel has under these circumstances (which includes a limit on aggressive "marketing" as a result of the AMD suit) is to compete by dropping price.

So -- regardless of the eventual outcome of AMD's private anti-trust actions -- x86 chips are probably coming down in price faster than would have been the case if Intel was left to its own devices . . . thereby directly benefitting consumers.

Moral of the story: Watch out for analysts who work for research firms that take in large consulting contracts from Intel.

Best,

Mark Stahlman
New York City


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