[plug] AMD sues Intel

simon simon at plumtek.com
Fri Jul 1 13:50:38 WST 2005


Richard Meyer (meyerri at westnet.com.au) wrote:

>  I have long felt that
> Intel was the MS of hardware. :-)

The main difference as I see it is the markets in which they compete.

Software is relatively complex stuff where you have opportunity to
differentiate yourself from your competitors through superior features,
quality etc. Once you gain a customer base, you can 'lock them in' through
proprietary file formats/protocols which makes it difficult for them to leave.
Making a piece of software is hard, and drawn out.

Silicon, on the other hand, is silicon. The difference for the end user
between running an AMD chip or an Intel chip is zero. Both brands of chips run
the same code (more or less). Generally the differences in specifications
between brands is negligible to the end user. They can only really compete on
price, and through superior marketing/distribution channels. Generally it is
very difficult for them to differentiate themselves from their competition
based solely on the silicon.

So they do what they have to do - force large companies into buying their
chips through devious means. Perform underhanded deals, undoubtedly kickbacks
galore, take potential customers on junkets to Asia, etc etc etc.

If I were an Intel shareholder, Id want them to be doing exactly that. If some
upstart billionaire with a fabrication plant found an patented something
tomorrow that allowed them to outperform intel/AMD on price/performance, and
large customers *werent* locked in somehow, say goodbye to both companies.

--
=================
Simon Scott
simon at plumtek.com
mob: 0409113359
=================






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