Originally Posted by _GTech
Intel CPU Maker = Intel Chip Maker / Motherboard Maker
A Loss = A Loss...
Cost of Loss = What Consumers will pay... (That's pretty much the bottom line.)
You seem to be laboring under the delusion that Intel suffering a loss (which they most definitely are NOT, check their earnings) will somehow affect their pricing. The market, not Intel's financial status, determine pricing. There is a certain price will Intel will make the most money overall, that is not always the highest price.
Take this example. Lets say that if you sell cakes at $5 a cake you will sell 100, as 100 people are willing to spend $5 for a cake. Then lets say that if you drop the price to $3 200 people will be willing to buy the cake, as 200 are willing to spend $3 on a cake.
Even though you charge less per cake you end up making more money. 5x100=500 while 3x200=600. You made $100 more dollars by charging less for your cake. You have to factor in cost as well but a lot of manufactured things do not have a fixed cost and costs go down the more your produce, up to a point.
I was really hoping GTech would try and argue the point.Edited by Mygaffer - 2/7/11 at 3:38pm