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zarx said:
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Ironically it's probably as much Intel trying to keep AMD arround so as to avoid strict anti monopoly regulations as anything. If Intel wanted to get rid of AMD they could lower prices across the board and AMD would be dead real quick. I mean Intel makes twice as much profit as AMD makes revenue these days.

That's one theory. Intel are also forced to have a 60% gross margin by their shareholders, because they include big pension funds and other risk-averse groups. This seriously limits their control over pricing. AMD is able to survive by taking 40% or less.

Also Intel is competing with themselves somewhat: they need to persuade people that buying a new PC is indeed better. Their recent focus has been more on battery life than high-end performance for this reason.

Hopefully Apple/Qualcomm/Samsung using ARM will emerge as a viable alternative for desktop chips.