Originally Posted by nerdygeek
Come on guys AMD will never go down for one simple reason. Intel won't let it. This may sound crazy but its the same reason MACs are still so prevalent. If any one company has a monopoly they are so incredibly screwed. Bill gates wont let MACs go away and Intel wont let AMD. Its not worth it for them to let their competitors die, its more cost effective for them to be in business.
That's the worst business logic I've ever heard in my life. If you don't have any competitors and people need your product, profit margins go way up. As long as Intel didn't jack up their prices, they can't be hit with an antitrust law (in the US at least). Macs are still prevalent not because microsoft let them be (another very stupid assumption), but because they have been crowned as the designing computer, (good luck trying to explain to someone who doesn't know computers why that's a horrible argument in today's world), they have a sleek design, and people love iPods so they "trust" Apple.
A monopoly is ideal in a capitalist market. The only time a monopoly would be a bad thing is if the company starts price gouging, but they won't get away with that for too long as they'll get fined, and the government pretty much pays other companies who takes risks to compete with the company. Also if a company under prices, they'll get slapped with an antitrust lawsuit. That means Intel can't start selling their high end chips for $80, taking a loss, but in doing so knocking out a major competitor, making their long term profits increase greatly.
It was amazing to see the X2 prices drop what seemed like 50% in under a week last year. I don't know AMDs financials, but their phenom is going to have to be much better in performance and price if they want to stick around most likely. No company can keep taking hits of hundreds of millions every quarter (comfortably at least). If AMD did die out, it wouldn't be as bad as some of you think. As I've already covered, they can't price gouge, but yes, prices would be higher. A company can't slouch too much on research though, because the government is willing to pay companies to take a risk and compete. Worst case scenario being AMD loses a bunch of money, gets bought out by another company, Intel pretty much gains most of the market share, slouches off, AMD comes back strong after working on a new chip line, gets money from the government. What would be best for Intel is to buyout AMD if their profit margins keep dropping hundreds of millions (no company can repeatedly take hits like that comfortably), but I doubt Congress would let that happen, it would most definitely get vetoed in fears of a monopoly. So I conclude, don't ever give business advice again, please.