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They could have priced higher and still dominated intel price/perf ratio wise. The supply/demand equilibrium point is somewhere higher than the current price an
by missosoup 7y ago
They could have priced higher and still dominated intel price/perf ratio wise. The supply/demand equilibrium point is somewhere higher than the current price and lower than intel break-even price.
The only way they'd set the impression of overpricing is if they actually overpriced. They did the opposite.
Whether it was a mistake in pricing or some calculated second-order strategy, we'll never know. What we do know is they're leaving cash on the table whether intentionally or not.
Temporarily (keyword) underpricing to hurt competitors is not unheard of but I don't see how it will hurt intel unless it significantly shifts mindshare for the next ~2 years and allows AMD to get a real foothold in the server market.
- zwaps 7y agoThey have basically one opportunity to set the expected price point and as it turns out, they prefer to get all the positivity and hype on their side, than perfectly optimize to marginal demand. I am not sure it is a bad choice.