Intel stock drops as chip competition intensifies; fallout from a price cut and a new product from an old rival
Article Abstract:
Intel Corp's stock fell $2.25, closing at $49, on May 14, 1992, following an announcement that the company would reduce the price of its 20-MHz 80486SX microprocessor from $282 to $119. Market analysts note that the lower price merely matches existing street prices for the microprocessors and that investors over-reacted to the announcement. However, Intel's action does signify the company's acknowledgement of competition from makers of 80386- and 80486-compatible chips. Texas Instruments and Advanced Micro Devices Inc are marketing 80486-compatible chips and Chips and Technologies Inc is marketing an 80386-compatible chip. While observers do not expect Intel's profit margin to shrink, Advanced Micro Devices' 40-MHz 80386DX microprocessor has been gaining a portion of the market share. Advanced Micro Devices plans to sell 80486SX-compatible and 80486-compatible chips by the end of 1992, and company officials say they will meet Intel's prices while selling a superior product.
Publication Name: The New York Times
Subject: News, opinion and commentary
ISSN: 0362-4331
Year: 1992
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Jury backs Intel Corp. in chip case
Article Abstract:
A federal district court jury rules that Advanced Micro Devices Inc (AMD) does not have any claim to the microcode found in Intel Corp's 80287 math coprocessor chip. This ruling will thwart AMD's plans to develop and sell clones of future generations of Intel's chips. This decision will make it much more difficult for AMD to produce a clone for Intel's 80486 chip. AMD says the ruling might slow down its release of a 486 chip, but will not prevent the company from continuing to compete with Intel. Intel's copyright-infringement case against AMD's 80386 chip is still pending.
Publication Name: The New York Times
Subject: News, opinion and commentary
ISSN: 0362-4331
Year: 1992
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Comment about this article or add new information about this topic:
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