Tuesday, July 19, 2005

AMD files antitrust suit against Intel

A contemporary monopoly case: AMD against Intel.

According to the complaint, Intel has forced major customers such as Dell Inc., Sony Corp., Toshiba Corp., Gateway Inc. and Hitachi Ltd. into exclusive deals in return for cash payments and other deals.

Intel has bullied 38 companies, including large-scale computer-makers, wholesale distributors and retailers, to secure a monopoly in the highly competitive x86 microprocessor market.

I don't think this is a monopoly. Intel through its hardwork and correct marketing strategy established a right position and a right product in the market. Having a huge share of the market has two sides. One is Intel is really big, two is consumer's preference. I personally think that AMD is inferior to Intel chips. So i buy Intel. Why I think Intel is inferior? becuase I know AMD's history is shorter than Intel, and everyday I saw high quality ads on TV promoting Intel product. Intel put much more effort to promote its product than anyone else. So consumers have some brand loyalty to Intel. And Intel can give its customers: Dell, Sony, etc. a better deal than AMD. It is a natrual thing when company shopping around for cheap chips and choose the better deal.

a right position and a right product in the market is not a fault and should not be considered monopoly.

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