You've heard all about Intel
But it's a very different story in the lower regions. Reviewing AMD's latest slab of budget-friendly processors, longtime industry observer AnandTech noted that AMD is "killing Intel" below the $90 price point. Compared to Intel, the reviewer would take AMD's new three-core chip -- but it's not the best deal AMD can offer. The gaming gurus at FiringSquad concur: "Obviously Intel's willing to concede this business to AMD for the time being," and "you'll just have to pick which value AMD CPU to choose from."
Intel could become more competitive in this space by simply dropping the price of a few strategically chosen processors -- but that has arguably been the case for a while, and Intel ain't going there. In part, I'd imagine that Intel wants to protect its nice, fat gross margins by keeping unit prices on the high end. That strategy also reinforces Intel's image as a luxury brand next to AMD's budget proposition -- a tactic that has worked well for Apple
Then again, Intel's pricing plans could be designed to keep antitrust regulators at bay. AMD and Intel are playing a high-stakes game of whodunit in courtrooms and government agencies around the world, and Intel would be silly to give its prosecutors fresh ammunition today. Yes, price changes are an everyday tool for every business. That's not important; it's the perception of strong-arming the competition that Intel needs to avoid.
That's how these reviews illustrate one reason why I believe that AMD will be around for years to come. At worst, the company could be buyout fodder for longtime partner IBM
That's good enough for me. How about you? Share your thoughts in the comments below.
AMD's share price has nearly tripled since Anders explained that you need AMD in 2009. Fool contributor Anders Bylund owns shares in AMD, but he holds no other position in any of the companies discussed here. Apple is a Motley Fool Stock Advisor recommendation. Dell and Intel are Motley Fool Inside Value recommendations. Try any of our Foolish newsletters today, free for 30 days. You can check out Anders' holdings and a concise bio if you like, and The Motley Fool is investors writing for investors.