AMD

11 Pages 2764 Words

ugh AMD could not change any of the corporate buyers’ minds, the company did prove that the Athlon microprocessor is faster, more reliable and cheaper than Intel’s Pentium IV (Letters 2001, 3).
This failure was frustrating for AMD, but this is the price a firm has to pay when attempting to enter a competitor’s market. Clearly, Intel has the first-in advantage, although AMD has a better quality portfolio with a cheaper price. However, sooner or later this trend must change because Intel’s marketing cannot hide this reality. Some laboratories have tested both AMD Athlon and Intel Pentium IV and have concluded that while Intel’s Pentium IV is not worth what it costs, AMD’s Athlon costs what it is worth. Thus, AMD does not have to attract customers by resorting to rebates and discount programs, as Intel has to do. Another weapon Intel has is to cut processor prices.
In any case, Intel does not want to lose any market share, and AMD wants to get more, so the rivalry and price war will certainly continue this year. They both k...