Eric Ross Pricing Quotations

This is an unusual and unexpected pricing move. Typically, Intel will lower pricing on its older-generation product line when ready to introduce a new product.

In 2000 flash was a huge contributor to AMD's earnings, ... In 2003 it was a contributor as well, but if pricing continues, it will be a drag for the company, and there are no natural buyers of the AMD flash business.

Intel's costs are largely fixed, and we believe pricing cuts will eat away at margins.