Originally posted by: Idontcare
Originally posted by: SexyK
Intel's basic CPU pricing structure has been the same for decades, spanning periods where AMD was virtually nonexistent and periods where AMD had a strong lead. In fact, basically the only time Intel has deviated from their basic pricing structure has been to lower prices, not raise them. If you think Intel will suddenly start charging $500 for entry-level CPUs were AMD to get out of the market, you are crazy, it just won't happen. For the primary reason that it makes no sense for Intel - they still want to sell as many CPUs as possible whether AMD is around or not! If prices jump, people will stick with their old machines that run Word and IE like butter and not worry about the latest and greatest, whereas if prices stay where they are, many people will be much more likely to upgrade.
IF Intel effectively castrated AMD and enabled themselves to garner a very effective monopoly on the consumer PC market but
did not leverage this power into driving up gross margins then as an Intel shareholder I would join the other shareholders in a class action lawsuit against Intel management for squandering the shareholder's rights to higher gross margins and profits.
It is fiducially irresponsible of Intel's management to secure a
poorly vieled monopoly in a manner which brings the wrath of the US DOJ upon it's shareholders should the DOJ elect to break-up Intel as they did AT&T.
Likewise it is fiducially irresponsible of Intel's management to secure a well veiled monopoly and not slow-down R&D (go to a 4yr/node or 6yr/node cadence instead of the current 2yr/node cadence) so that the gross margins can increase while continuing to sell last years chips at last years prices for the next 2 years.
Intel won't raise prices, that would be the hallmark of a poorly vieled monopoly and it would be irresponsible. But Intel won't (can't) justify needlessly pouring billions of
shareholder's dollars into R&D for next next next gen microarchitecture and process technology nodes. The litmus test for "needless" is when you have next to zero competition for the foreseeable future...i.e. a well vieled monopoly.