AMD stock downgraded to 'sell'

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Chip price war will be a go, no question

This really is a no brainer. There is going to be some kind of a price war, although its difficult to say how deep the prices will actually dip or how long the war will persist.

The reasons for such a priceing war are so obvious they would get right up and slap you in the face if you ignored them for too long. First look at the facts as we know them;

1. Intel was the industry leader for quite some time, certainly by far in quantity sold and to some degree in quality by way of CPU speed for one.
2. AMD has stepped up to the plate, and for a while now have been cranking out CPU?s that show performance figures that are better then Intel?s in relatively similar price ranges.
3. AMD?s CPU?s used to be the cheaper solution for a CPU, but their increased performance in recent times has lead to an overall price increase for the now potent AMD processors, but that in itself is just fine, they are a great product and worth the cost.
4. Intel has lost some market share because people who are in ?the know?, which is a reasonable number of the computer purchasing public, now look to AMD for a CPU because they are the better processor, even if often a little more expensive then a comparable Intel model.
5. Intel has the capacity to produce far more processors then AMD, and Intel is working on a new generation of processors, how long before the new ones will be ready to hit the streets, that is one thing we do not know for sure, but we do know if they want they can pump out a whole lot of the current ones if they choose to, and no doubt they have more then a few on hand in stock that haven?t sold due to AMD?s increasing market share.
6. Intel likes having almost all the market, a lot, and they hate to loose even a little bit of it. As there are still many of the computer purchasing public who still don?t now what ?AMD? even is, Intel would like to keep it that way and is most likely going to make efforts to regain what market share they lost, and they have no reason to just wait for the completion of the new chips, or rush their completion if they do not have to, if there is another way to fight AMD right now, they will do it, right now.

Intel is bound to reduce their chip prices and pump out as many as they can at the low prices to stifle any increase in AMD?s sales, then when the new chips come out, they are likely hoping the new chips will be better able to compete performance wise with whatever AMD is selling at the time. How long all this will take?.who knows.

Posted by: Cayble   Posted on: 03/13/06 You are currently: a Guest | Members login | Terms of Use

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