Thursday, May 04, 2006

AMD‘s better cost performance

IIPM Business & Economy
Another factor, which might trip the scales in AMD’s favour and improve profit margins, is its state-of-the-art 65nm manufacturing process, expected to begin in the second half of 2006. AMD might be giving its archrival a run for its money, but it will be foolhardy to underestimate Intel. Intel is practically slashing prices to compete with AMD‘s better cost performance. Last year, AMD used the 21st century equivalent heaver: a lawsuit blaming Intel for its anti-competitive practices, and has alleged that Intel has monopolized the market.

Maybe it is AMD’s ploy to keep Intel embroiled in legal matters so it concentrates less on its innovation and market strategy. While AMD’s strategy is making its prospects look brighter, Intel (despite its less competitive architecture) is smart enough and coming out with its less power consuming redesigned chips to run at higher speed. Let’s see what tomorrow brings!....

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Source :- IIPM Editorial, 2006

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