ONe last time - AMD doesn't have the capital necessary to invest millions in advertising. If they spent their profits, then they'd have less to show in terms if returns to its stockholders. Intel can spend much more money, and still show a reasonable rate of return to its shareholders. That's advantage one to Intel.
Intel also can offer deeper discounts of its products than AMD because of volume. Therefore, while Intel can afford to drop the price of a processor by 15% or more, AMD can only afford 5%, maybe 10%. So even though the Intel may cost more initially, the discounts drop its price lower than the AMDs to the OEM. The OEM passes on the normal retail price to the consumer, which means that their profit margins go up. That's advantage two to Intel.
When Intel runs its own ads as well as partners up with Dell and HP in massive TV as campaigns, they are utilizing their additional capital to buy up ad time that would otherwise be available to other companies. Consequently, even if AMD had the capital to run a full ad blitz, they would then face the dilemma of trying to find ad space after Intel snatched up most of it. So access to advertising opportunities is as much of an issue as access to OEMs. Advantage three Intel.
Finally, one of the best ways to promote a product is word of mouth - having customers satisfied with a particular company or product recommending it to their friends, family and coworkers. When Intel is establishing market quotas for its OEMs by linking discounts to the number of AMD units sold, they are limiting AMD's exposure to the market. That in turn limits the ability of consumers to tell others about their experiences with AMD products. After all, if you can't buy it, you can't recommend it. Advantage four for Intel.
It's not the simple, black and white issue you try to make it. There's other factors besides simply how much profit a company makes and what they do and don't do. that's why I just listed those four areas in which Intel has a distinct advantage over AMD. While only the market quotas really applies to the case brought before the courts, a ruling in AMD's favor could easily shift the balance of power towards them, thereby leveling the playing field and providing opportunities to address the other areas in which Intel has an advantage in.
|Ok you see my point and I see yours, and people don't go to walmart because its superior they go to walmart cause its cheap... I don't know if that was a good example to portray what you meant because a local businesses are in no way able to compete with wal-marts low prices and range of goods.
Actually, that was a prefect example. Both Wal-Mart and Intel use their volume to their advantage. Because Wal-Mart buys in such large quantities, they can negotiate discounts that a local grocery store or general store couldn't possibly match. Because Intel sells in such quantities, they can afford to offer steep discounts on their CPUs, whereas AMD can't match those offers because they don't deal in the quantities Intel does. It's the exact same issue - uncercut the competition by offering deals you know they can't match.