Intel's pain is AMD's gain

Regardless of AMD winning the case or not, AMD has won in the court of public opinion. The allegations against intel have cast the goliath in a negative light, and that alone can have a negative effect on Intel, a positive effect on AMD.

For the next while, I think Intel will be reluctant to engage in a price war, not only for reasons of public relations but als investor relations. Intel must leave AMD alone to turn a profit and itself regain the confidence of Intel investors. AMD has just gained some breathing room.

I have a full analysis here as well:

http://amdinvestor.com/2007/12/27/what-do-you-think-amd-is-worth-an-amd-stock-analysis/

Sir- Competitions between two main rivals are often unavoidable and sometimes even healthy. Both of the competing forces can use competition to assess their strengths and weaknesses. Fair competition is desirable and often leads to mutual benefits if the survival of neither one of them is threatened. In the case of Intel and AMD, the competition, mostly viewed as a war of attrition, is between unequal. Although both of these two companies will suffer financially, however, the weaker one, in this case AMD, will end up receiving heavy punches that threaten its own survival. The onslaught lunched by Intel toward its smaller rival might in the natural world might be acceptable.

However, when Intel engages in unlawful monopolistic acts, as alleged by AMD, the argument then deserves a better scrutiny. If indeed Intel intended to harm the interests of AMD by preventing its own clients from using and buying AMD chips in attempt to drive it out of business, Intel then should become liable for violating anti-trust law designed to ensure “fair” competition. New York attorney General would not have filed a subpoena unless there are substantial evidences supporting the violations. These kinds of allegations definitely warrant the case brought by AMD to go to trial. If it was found guilty, Intel will have to reimburse financially AMD and the consumers who are hurt in the process. This should be used as lessons for big companies to play by the rules and to help weaker ones from being annihilated.

Joe Baaklini