But it's also hurting Intel
Look at how much their profits have dropped. Plus, they've been losing money big time getting into other (e.g. networking) markets -- and these markets will not support monopoly pricing (at least by the chip vendors such as Intel, although maybe by the end producers such as Cisco).
In some ways, it could be worse for Intel. Intel's much higher stock price is based on monopoly margins -- and if they have a big loss due to the pricewar they started, it'll be interesting to see how investors react.
I don't think AMD is going away -- if they run out of cash, I'd expect someone to pick them up, which could be even worse for Intel. If they can make it to next summer, when the Hammer comes out, Intel will be in real trouble. And I expect AMD will make it.
BTW, the DRAM and HDD companies are using similar logic (Seagate, the largest HDD company, has been the worst offender with pricing below cost) -- it's called "last man standing". But, now HDD's are a commodity and I don't think they'll be able to get buyers out of a commodity mindset to increase margins again. (For one, they'd have to produce products with compelling differences -- but even then they'd have to market the heck out of it)
Tony
Who is helping AMD along by buying yet another Athlon from NewEgg
-- and hopes that Sun will go on the war path with Jalapeno AND Motorola will finally figure out how to make G5's
