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> Solution One: Breakup > Solution Two: Subsidies Solution Three: lower prices/margins (temporarily) to match the value proposition of AMD on Windows PCs and

> Solution One: Breakup > Solution Two: Subsidies Solution Three: lower prices/margins (temporarily) to match the value proposition of AMD on Windows PCs and Linux Cloud servers.

hakcermani 6y ago
Solution Four: Is it even possible that Intel and AMD merge ?! With ARM based chips clearly accelerating and poised to take a big market share (Apple, Nvidia, Amazon, Qualcomm becoming major players) there is less of an antitrust issue ?
- vinay_ys 6y ago
  It is more likely they will stick to their guns like IBM sticking with Power (which is technically awesome) but still pricing it too high (because cost economics is likely out of whack) and in the process they will lose developer mindshare. I really hope Intel does better than IBM with Power.
twblalock 6y ago
Intel needs to change the way it does business. Simply lowering prices won't achieve that. Becoming the cheap option is likely the beginning of a death spiral the company will never recover from -- it will give the company an excuse to double down on a failing strategy. Furthermore, AMD is not the biggest threat to Intel. The biggest threat is cloud providers like Amazon designing their own chips, which is already happening. If those succeed, who would build them? Certainly not Intel, if they continue to manufacture only their own designs -- that business, like so much other fab business, will go to TSMC.
- sradman 6y ago
  > Becoming the cheap option is likely the beginning of a death spiral... Maybe. I didn't suggest becoming the cheap option I suggested re-evaluating its premium pricing strategy in the short-term to reflect current and future customer value. Margin stickiness seems to be a built-in bias similar to the sunk-costs fallacy. Server-side Neoverse is a threat but a slow-moving one. I'm assuming that "Breakup" (going fabless) will not show benefits for many months if not years. Price seems like an obvious lever; perhaps I'm being naive about pricing but it's not obvious to me why.

> Solution One: Breakup > Solution Two: Subsidies Solution Three: lower prices/margins (temporarily) to match the value proposition of AMD on Windows PCs and Linux Cloud servers.

hakcermani 6y ago

Solution Four: Is it even possible that Intel and AMD merge ?! With ARM based chips clearly accelerating and poised to take a big market share (Apple, Nvidia, Amazon, Qualcomm becoming major players) there is less of an antitrust issue ?

vinay_ys 6y ago
It is more likely they will stick to their guns like IBM sticking with Power (which is technically awesome) but still pricing it too high (because cost economics is likely out of whack) and in the process they will lose developer mindshare. I really hope Intel does better than IBM with Power.

twblalock 6y ago

Intel needs to change the way it does business. Simply lowering prices won't achieve that. Becoming the cheap option is likely the beginning of a death spiral the company will never recover from -- it will give the company an excuse to double down on a failing strategy. Furthermore, AMD is not the biggest threat to Intel. The biggest threat is cloud providers like Amazon designing their own chips, which is already happening. If those succeed, who would build them? Certainly not Intel, if they continue to manufacture only their own designs -- that business, like so much other fab business, will go to TSMC.

sradman 6y ago
> Becoming the cheap option is likely the beginning of a death spiral... Maybe. I didn't suggest becoming the cheap option I suggested re-evaluating its premium pricing strategy in the short-term to reflect current and future customer value. Margin stickiness seems to be a built-in bias similar to the sunk-costs fallacy. Server-side Neoverse is a threat but a slow-moving one. I'm assuming that "Breakup" (going fabless) will not show benefits for many months if not years. Price seems like an obvious lever; perhaps I'm being naive about pricing but it's not obvious to me why.