Intel manufactures large volumes of state of the art microprocessors consistently. Intel has deep pockets & takes advantage of it marvelously! AMD cannot, at present match the speed & consistency of Intel production. Do you reckon AMD will ever top Intel to be Number One? The best AMD managed was for a couple of months in 2006, a company worth $20 billion, looking like a real side by side competitor with its 64 bit microprocessors. Today, AMD is worth about $3.8 billion after acquiring the popular graphics chipmaker, ATI last year.
Nonetheless, the presence of AMD in the chip market has over the years, contributed to Intel having to cut its chip prices & improve its own products. AMD keeps Intel on its toes to maintain the position as market leader & microprocessor technology innovator. Do you agree that AMD is the major force that makes Intel reduce it's chip prices? Without AMD, as in the past years of it being in obscurity & before competing directly with Intel; Intel was commanding premium prices & slower as compared to today to provide new microprocessors.
Nonetheless, the presence of AMD in the chip market has over the years, contributed to Intel having to cut its chip prices & improve its own products. AMD keeps Intel on its toes to maintain the position as market leader & microprocessor technology innovator. Do you agree that AMD is the major force that makes Intel reduce it's chip prices? Without AMD, as in the past years of it being in obscurity & before competing directly with Intel; Intel was commanding premium prices & slower as compared to today to provide new microprocessors.
References:
Kirkpatrick, David. "Why contrarians should consider AMD." Fortune 8 April 2008. 8 April 2008<http://money.cnn.com/>.
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