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> somehow involuntary Given the choice, Intel would rather resist AMD's expansion of market share and gross margins without lowering their prices.
by neogodless 6y ago
> somehow involuntary
Given the choice, Intel would rather resist AMD's expansion of market share and gross margins without lowering their prices.
- totalZero 6y agoAn involuntary price change would be one in which Intel is following a price set by AMD. Think about price takers and price makers. In this case Intel is undercutting AMD and setting a low price that forces AMD to keep its own pricing lower. This is disadvantageous for AMD because its ability to satisfy spikes in demand is capped; additional orders for unexpected demand have to flow through the TSMC pipeline, which is also used by many other companies. In contrast, Intel can meet demand because it owns its production processes; Intel churns out more product and absorbs the unexpected demand. Per-unit margin matters less for Intel because its share of the unexpected/marginal demand is high.