I agree with most of your points. One minor quibble though. This may be a free market system, but assuming for whatever reason AMD drops out of CPU manufacturing, who the hell would have enough capital to invest in manpower, research, and fab plants to become competitive with Intel? Bill Gates.....maybe. California? Seriously, can you even imagine how many investors would have to be brought into such a venture? It's staggering. There's a duopoly for a reason.
Probably a consortium... keep in mind if AMD does not go Chap 11 (reorg)... but rather liquidates...
Then any company entering the market would get all of AMD's assets for pennies on the dollar (or at least the ones that they wanted).
I wouldn't rule out some korean companies getting in the mix against Intel.
But anyway... what can you overclock a 6800 or 6850 to?
Edit: Hypothetically, if Intel was the only game in town... the government would be all over it - it would become a regulated company. I'm sure there would either be a break-up or profit limits enacted. However, I see either an AMD reorg or a new competitor arising as much more realistic.
Don't worry, if AMD bites the bullet (I doubt it), no one wil be able to come in with the perdatory pricing scheme Intel is getting away with.
First, you'd need something much faster and then you'd need enough capital to deal with the bleeding Intel can cause with their "monopoly."
It looks bad for the PC industry right now. If OEMs thoght their margins were razor thin before......
Intel is
not engaging in predatory pricing.
Predatory pricing (also known as Destroyer pricing) is the practice of a firm selling a product at very low price with the intent of driving competitors out of the market, or create a barrier to entry into the market for potential new competitors. The Supreme Court established that for prices to be predatory, they must be below the seller's cost.
Intel is making a profit. To say it is predatory pricing is factually incorrect. It is impossible to argue otherwise unless you make up a new definition for predatory pricing.
Intel is
not a monopoly.
Primary characteristics of a monopoly:
1. Single Seller: In this type of market, there is only one seller of a single, specific commodity which is well known.
2. No close substitutes: 'Monopoly' not only implies a single seller, but it also means a single seller of a commodity that has no close substitutes. If there are substitutes available, competition arises.
3.Price maker: there are no competitors present that can exert pressure on the pricing structure of the dominant firm.
Intel does not have
any of the primary characteristics of a monopoly. AMD's pricing affects Intel's pricing. The demand for Intel's products is directly related to Intel's pricing (i.e. there is an upwardly sloping demand curve, not a vertical curve.)
It's tiring to hear the same rubbish over and over again. It is as if repetition will make it true!
If AMD disappears, would Intel then become a monopoly? Probably, but that is a big IF.....and not a current truth.