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Intel reportedly considers CPU price cuts to defend market dominance

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rjohnson11
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2020/01/21 10:02:13 (permalink)
https://www.overclock3d.net/news/cpu_mainboard/intel_reportedly_considers_cpu_price_cuts_to_defend_market_dominance/1
 
Intel is facing stiff competition within the CPU market, with AMD's new Zen 2 architecture delivering compelling performance numbers across the desktop, enterprise and notebook markets. Intel hasn't faced competition this intense in well over a decade, making the company's x86 dominance far from assured moving forward. 

DigiTimes (behind paywall) has reported that Intel plans to cut the prices of its processors in the second half of 2020, citing sources within several major PC manufacturers. These price cuts could be how Intel plans to combat AMD's next-generation Ryzen processors, as AMD is sure to release new processors this year. AMD's Lisa Su has already stated that the company plans to talk more about its Zen 3 series processors later this year, a promise which should have Intel worried. 

Intel's 2020 series of mainstream desktop processors are expected to be made up of Comet Lake series parts. These CPUs will contain up to 10 cores and utilise what's fundamentally the same underlying CPU architecture as Coffee Lake and Kaby Lake, albeit with higher core counts and clock speeds. This limits the competitiveness of Intel's 10th generation desktop products, as a lack of change on the process, which is expected to remain as 14nm, and architecture fronts will prevent Intel from making major single-threaded performance gains are significant leaps in power efficiency.     
   
As Intel enters the second half of 2020, the company may need to start offering its customers more value. If they cannot provide increased value on a technological level, with boosted CPU performance or power efficiency, the company will need to deliver it with decreased prices. This will cut into Intel's profit margins, and may also force AMD to reconsider its own pricing.  
 
Lower pricing will help spur demand, and furthermore it will allow consumers to get a lot more for their money. Strong competition has forced Intel to start offering better processors at lower prices, and price decreased from Intel may force AMD to become more aggressive as it prices its planned Zen 3 series products. Ultimately, these moves will get high-performance technology into the hands of more PC builders, and help fuel upgrade cycles for consumers and businesses alike. This should result in increased PC sales and help reduce the number of "PC is dead" headlines that you will see in the press. 
 
I thought 10nm would be available to Intel in the latter part of this year. Well if you read this article it doesn't appear that way. 

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    aka_STEVE_b
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    Re: Intel reportedly considers CPU price cuts to defend market dominance 2020/01/21 10:08:33 (permalink)
    * considering price cuts *  ....?  
     
    OK, then....
     

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    atfrico
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    Re: Intel reportedly considers CPU price cuts to defend market dominance 2020/01/21 10:13:59 (permalink)
    Told ya😼. Everyone wins. Ty AMD for the lower price competition.😼

    Those who abuse power, are nothing but scumbags! The challenge of power is how to use it and not abuse it. The abuse of power that seems to create the most unhappiness is when a person uses personal power to get ahead without regards to the welfare of others, people are obsessed with it. You can take a nice person and turn them into a slob, into an insane being, craving power, destroying anything that stands in their way.
     
     
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    Xavier Zepherious
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    Re: Intel reportedly considers CPU price cuts to defend market dominance 2020/01/21 10:27:36 (permalink)
    Id be a bit afraid after reading this
     
    Intel Upgraded by Jefferies Amid Changes in its Management Team and the Prospects of a Restructuring That Includes the Possibility of Going ‘Fabless’ 
    https://wccftech.com/intel-upgraded-by-jefferies-amid-changes-in-its-management-team-and-the-prospects-of-a-restructuring-that-includes-the-possibility-of-going-fabless/
     
    ----------------------------------------------------------
     
    basically leaving us with fewer fab companies 
    oligopliy to monopoly...see the trend here
     
    if this trend holds out Silicon prices will rise more
     


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    gutcheck
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    Re: Intel reportedly considers CPU price cuts to defend market dominance 2020/01/21 10:29:43 (permalink)
    Wow this is almost admitting they won’t have anything but 14nm chips this entire year? That’s insane! AMD is likely in my next refresh this is just getting silly.

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    atfrico
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    Re: Intel reportedly considers CPU price cuts to defend market dominance 2020/01/21 10:46:59 (permalink)
    gutcheck
    Wow this is almost admitting they won’t have anything but 14nm chips this entire year? That’s insane! AMD is likely in my next refresh this is just getting silly.

    I find it strange Intel is having problems with getting 7mm fab. It seems like the fab companies dont want.to deal with Intel at all. 🤔
    My suspicion there is a rift between Intel and.the fab companies😳

    Those who abuse power, are nothing but scumbags! The challenge of power is how to use it and not abuse it. The abuse of power that seems to create the most unhappiness is when a person uses personal power to get ahead without regards to the welfare of others, people are obsessed with it. You can take a nice person and turn them into a slob, into an insane being, craving power, destroying anything that stands in their way.
     
     
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    Cool GTX
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    Re: Intel reportedly considers CPU price cuts to defend market dominance 2020/01/21 10:50:57 (permalink)
    cuts maybe in the second half of 2020
     
    Intel needs to get their capacity back up or loose market share ... because AMD is happy to sell chips to those Mfg that cant get the Intel CPU

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    atfrico
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    Re: Intel reportedly considers CPU price cuts to defend market dominance 2020/01/21 14:26:13 (permalink)
    Cool GTX
    cuts maybe in the second half of 2020
     
    Intel needs to get their capacity back up or loose market share ... because AMD is happy to sell chips to those Mfg that cant get the Intel CPU

    Those cuts need to happen now!! Tax season is around the corner and people will pull the trigger upgrading. EVGA should follow up with a.good bundle deal if Intel is doing those cuts.

    I should charge for my accurate forseen expectations😼.

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    Those who abuse power, are nothing but scumbags! The challenge of power is how to use it and not abuse it. The abuse of power that seems to create the most unhappiness is when a person uses personal power to get ahead without regards to the welfare of others, people are obsessed with it. You can take a nice person and turn them into a slob, into an insane being, craving power, destroying anything that stands in their way.
     
     
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    #8
    Xavier Zepherious
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    Re: Intel reportedly considers CPU price cuts to defend market dominance 2020/01/21 16:14:09 (permalink)
    atfrico
    gutcheck
    Wow this is almost admitting they won’t have anything but 14nm chips this entire year? That’s insane! AMD is likely in my next refresh this is just getting silly.

    I find it strange Intel is having problems with getting 7mm fab. It seems like the fab companies dont want.to deal with Intel at all. 🤔
    My suspicion there is a rift between Intel and.the fab companies😳



     
    they are not having a problem with their 7nm
    only the 10nm - which is Multimask and not EUV
     
    the problem is 7nm and 5nm equipment from ASML is not cheap and the smaller the shrink the more expensive and the larger equipment(and more equipment you need)...ie you have to build a larger FAB
    there is also a lead time from ordering equipment and getting the fab running like 3 yrs
     
    so by the time Intel realized they needed EUV - it was too lake for 10nm and with demand for EUV the lead time necessary is growing and getting more expensive
    why? because it takes time to make crystals for EUV and smaller fab process requires more of them , hence takes more time to build and becomes more expensive
     
    Intel took too long to decide to move to EUV - which is why they are in this bind
     
    which is also why they dropped one 10nm fab to go back to 14nm and one to go to 7nm
    also why the 10nm is delayed so much as well as limited production
     
    which is also why we heard rumors of them dropping 10nm and going to 7nm
    10nm is the dud really 
     
     
    remember 7nm Intel is equal to 5nm TSMC


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    #9
    Cool GTX
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    Re: Intel reportedly considers CPU price cuts to defend market dominance 2020/01/21 16:20:10 (permalink)
    Xavier Zepherious
     
    Intel took too long to decide to move to EUV - which is why they are in this bind
     
    remember 7nm Intel is equal to 5nm TSMC




     
    exactly
     
    & Intel has not Gone all Chiplets on us

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    ty_ger07
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    Re: Intel reportedly considers CPU price cuts to defend market dominance 2020/01/21 17:48:09 (permalink)
    Intel reportedly considers CPU price cuts to defend market dominance

    No matter how you spin it, if you are having to consider cutting prices due to competition, you are not dominant.
    Cool GTX
    & Intel has not Gone all Chiplets on us

    You say it like chiplets are bad.

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    Xavier Zepherious
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    Re: Intel reportedly considers CPU price cuts to defend market dominance 2020/01/21 19:13:38 (permalink)

     
    Intel can bury AMD in discounts and still be profitable....AMD only made approx 300Million net profit last year
     
    Billions of price puts from Intel(while still being profitable- just not the ROA investors want) could put AMD back in the red again
     
     
    you prod the monster too much you wake it up
     
    AMD would be better off raising prices slightly while slowly increasing market share
     
     
    in other news
    Intel Corporation Appoints New Chairman With Experience In Medical Robotics
     
    https://wccftech.com/intel-new-chairman-director-omar-ishraq/
     
     
    this is in strategy with other tech positions..one filled in with a former Chip designer from AMD and another in AI
     
     
    AI and robotics are the future
    post edited by Xavier Zepherious - 2020/01/21 20:07:15


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    Cool GTX
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    Re: Intel reportedly considers CPU price cuts to defend market dominance 2020/01/21 19:58:27 (permalink)
    ty_ger07
    Intel reportedly considers CPU price cuts to defend market dominance

    No matter how you spin it, if you are having to consider cutting prices due to competition, you are not dominant.
    Cool GTX
    & Intel has not Gone all Chiplets on us

    You say it like chiplets are bad.


    No, just saying its harder & More expensive to make one Big Chip ... Intel might have to go a different route ... to cut costs

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    atfrico
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    Re: Intel reportedly considers CPU price cuts to defend market dominance 2020/01/21 21:12:06 (permalink)
    Xavier Zepherious

     
    Intel can bury AMD in discounts and still be profitable....AMD only made approx 300Million net profit last year
     
     
    AI and robotics are the future

    Still living last decade 👌.
    🤔 Table is outdated counting profits from 2018 and 2019 is super old news.

    As per AI and Robotics? Skynet and the Sith called and would like to have an interview with you to fill a vacant position they have at the moment🤣🤣🤣🤣.
    You are aware AI is being used in Asia? And both AI and robots are replacing human jobs right?🙄.

    Intel can buy AMD right? Quick post this in the AMD or Intel forums and i would like to see their reactions😼

    Those who abuse power, are nothing but scumbags! The challenge of power is how to use it and not abuse it. The abuse of power that seems to create the most unhappiness is when a person uses personal power to get ahead without regards to the welfare of others, people are obsessed with it. You can take a nice person and turn them into a slob, into an insane being, craving power, destroying anything that stands in their way.
     
     
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    Xavier Zepherious
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    Re: Intel reportedly considers CPU price cuts to defend market dominance 2020/01/22 05:34:56 (permalink)
    u won't have 2019 net income til march this year
     
    that is not outdated
    year 2020 income doesn't start til march this year - thats start of 1stQ financial
    it goes according to Tax filings in march
     
    What planet R U on?
     
    Intel can bury them ->yes - they could buy them out ->yes -then they would be a monopoly and be broken up anyways
     
    Ive been hard on Intel for last 2 yrs but i don't pick sides and i don't act like a fan boi about it
     
     
    I suggest u take a read at semiaccurate on Intel shakeup
     
    Intel maybe ready to sell assets like the DPG or IOTG to build more fabs
    they have to 2x-4x the number of fabs they have to handle demand - that takes capital
    post edited by Xavier Zepherious - 2020/01/22 05:46:45


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    atfrico
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    Re: Intel reportedly considers CPU price cuts to defend market dominance 2020/01/22 05:51:40 (permalink)
    Xavier Zepherious
    u won't have 2019 net income til march this year
     
    that is not outdated
    year 2020 income doesn't start til march this year - thats start of 1stQ financial
    it goes according to Tax filings in march
     
    What planet R U on?
     
    Intel can bury them ->yes - they could buy them out ->yes -then they would be a monopoly and be broken up anyways
     
    Ive been hard on Intel for last 2 yrs but i don't pick sides and i don't act like a fan boi about it
     
     
    I suggest u take a read at semiaccurate on Intel shakeup
     
    Intel maybe ready to sell assets like the DPG or IOTG to build more fabs
    they have to 2x-4x the number of fabs they have to handle demand - that takes capital

    Omg you are so like briandester, if Intel can bury them why havent done so?
    If you think Intel can because of monopoly then why mentioning about it?
    Intel just fired part of a management what that tells ya? Cutting prices like never done before what sign is that?
    AMD taking 40% of Intel sales what that tells ya?
    Another year using 14mm what that tells ya?

    Those who abuse power, are nothing but scumbags! The challenge of power is how to use it and not abuse it. The abuse of power that seems to create the most unhappiness is when a person uses personal power to get ahead without regards to the welfare of others, people are obsessed with it. You can take a nice person and turn them into a slob, into an insane being, craving power, destroying anything that stands in their way.
     
     
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    #16
    Xavier Zepherious
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    Re: Intel reportedly considers CPU price cuts to defend market dominance 2020/01/22 06:37:42 (permalink)
    again what planet R U on - anti-competition laws - monopoly law
     
    they be seriously fined for it and then broken up
    they have limits due to anti competitive laws - they can't drive out their only competition or buy them
     
     
    we can't have one CPU company - I don't count PowerPC or ARM yet because market share is so small
    China is not a contender yet and VIA is just getting back into game
     
     
    We have had this issue for many years because USA does not want to use the laws to break up the BIG companies and foster real competition
    we have oligoplies - which lead to price fixing agreements with fewer companies- notably ram
     
    a single maker would force their hand
     
    Quite frankly i don't mind China getting in the game - then you'll see cheap CPU's (if u can trust it's not spying on u)
    but watch USA bring down trade actions
     
     
    post edited by Xavier Zepherious - 2020/01/22 06:49:08


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    #17
    atfrico
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    Re: Intel reportedly considers CPU price cuts to defend market dominance 2020/01/22 06:57:00 (permalink)
    Lol. I come from AMD planet where no hippies like you are allowed😼.
    you like seeing your things your way. Market has shifted is a new decade those.are.the facts. Many legitimate reviewers stated Intel is not.doing well. I go by what they say not you only one individual say.

    Those who abuse power, are nothing but scumbags! The challenge of power is how to use it and not abuse it. The abuse of power that seems to create the most unhappiness is when a person uses personal power to get ahead without regards to the welfare of others, people are obsessed with it. You can take a nice person and turn them into a slob, into an insane being, craving power, destroying anything that stands in their way.
     
     
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    #18
    Xavier Zepherious
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    Re: Intel reportedly considers CPU price cuts to defend market dominance 2020/01/22 07:17:51 (permalink)
    did i say Intel was doing great??? no!!!!
    but they are still doing better than AMD and with price cuts may stay there
    i have been chiming about intel being stuck on 14nm for years and lamblasting them on their 10nm ...marginal increase- lol I was not happy about it
    thats what happens when you don't have competition -high prices and marginal improvements - no push come to shove
     
     
    Rose colored glasses??? no 
     
    We have high prices and price fixing due to monopolies/oligoplies
     
    M$ has 90% of market share  Intel over 50%, Nvidia over 50% more like 70-80%
    what we need to do is break them up to put them at 10-20% a piece and see what happens and never let them get that big again
     
    what is it gonna be like if we only have 1 company? hell and pricy
     


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    #19
    Bobmitch
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    Re: Intel reportedly considers CPU price cuts to defend market dominance 2020/01/22 08:33:07 (permalink)
    Talking about it and doing it are two different things!  Currently, many vendors are jacking UP prices...not lowering.   Many of Intel's claims are just that...claims.  As my father used to say "Put up or shut up!"

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    #20
    Cool GTX
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    Re: Intel reportedly considers CPU price cuts to defend market dominance 2020/01/22 09:41:05 (permalink)
    Intel has almost 75% of the Global CPU Market
     
    If AMD can manage to take 30% away from Intel ..... (Doubt they can) Intel would Still control ~ 52.5% of CPU market
     
     
    Finance
    Intel Upgraded by Jefferies Amid Changes in its Management Team and the Prospects of a Restructuring That Includes the Possibility of Going ‘Fabless’
     
    (excerpt)
    "Intel currently controls nearly three-quarters of the global CPU market. Moreover, as detailed by Intel’s CEO in an exclusive Wccftech interview, the company is also focusing on GPUs, FPGAs, AI, next-gen 5G technology, etc. rather than solely relying on its CPUs. It should be interesting to see, therefore, if this positive prognostication by Jefferies pans out for the chipmaker."

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    #21
    Hoggle
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    Re: Intel reportedly considers CPU price cuts to defend market dominance 2020/01/22 11:04:12 (permalink)
    I am all for the decrease in price and really Intel and AMD are both great options. Anyone who does an Intel system or a AMD system would be happy and a lower price is great for everyone.

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    #22
    rjohnson11
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    Re: Intel reportedly considers CPU price cuts to defend market dominance 2020/01/22 11:14:22 (permalink)
    Hoggle
    I am all for the decrease in price and really Intel and AMD are both great options. Anyone who does an Intel system or a AMD system would be happy and a lower price is great for everyone.


    +1. I am curious what AMD will bring for Zen 3 and Intel's lack of showing off anything major at CES 2020 is not encouraging. 

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    #23
    knightsilver
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    Re: Intel reportedly considers CPU price cuts to defend market dominance 2020/01/22 11:26:22 (permalink)
    Intel has been sitting on their hands for years. My next two system builds will be AMD cpus.  Last few Intel chipsets have gave us what, nothing worth paying for, at least Nvidia is giving you something thats worth their milk money cost of a gpu.  Price cuts for Intel for late 2020, seems abit too late, I honestly hope AMD takes that 20-30% before mid-year....
    #24
    kevinc313
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    Re: Intel reportedly considers CPU price cuts to defend market dominance 2020/01/22 11:42:02 (permalink)
    Aren't we still in an Intel chip shortage???  Why would they need to dump product at a discount?
    #25
    vegajf51
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    Re: Intel reportedly considers CPU price cuts to defend market dominance 2020/01/22 13:02:01 (permalink)
    kevinc313
    Aren't we still in an Intel chip shortage???  Why would they need to dump product at a discount?


    Yes but the shortage isn’t due to high volume sales but manufacturing issues.
    #26
    kevinc313
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    Re: Intel reportedly considers CPU price cuts to defend market dominance 2020/01/22 13:16:03 (permalink)
    vegajf51
    kevinc313
    Aren't we still in an Intel chip shortage???  Why would they need to dump product at a discount?


    Yes but the shortage isn’t due to high volume sales but manufacturing issues.



    Law of supply and demand still applies.
    #27
    ty_ger07
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    Re: Intel reportedly considers CPU price cuts to defend market dominance 2020/01/22 14:33:57 (permalink)
    kevinc313
    vegajf51
    kevinc313
    Aren't we still in an Intel chip shortage???  Why would they need to dump product at a discount?


    Yes but the shortage isn’t due to high volume sales but manufacturing issues.



    Law of supply and demand still applies.

    Agreed. Demand is waning. Consideration of losing marketability still applies. As I said above, you have to question the position of dominance if price reductions are truly being considered. Otherwise, one contradicts the other.
    post edited by ty_ger07 - 2020/01/22 14:43:15

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    #28
    atfrico
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    Re: Intel reportedly considers CPU price cuts to defend market dominance 2020/01/22 14:42:24 (permalink)
    ty_ger07
    kevinc313
    vegajf51
    kevinc313
    Aren't we still in an Intel chip shortage???  Why would they need to dump product at a discount?


    Yes but the shortage isn’t due to high volume sales but manufacturing issues.



    Law of supply and demand still applies.

    Agreed. Demand is waning. Process of losing marketability still applies.

    I agree if you agree AMD is the cause of it😼.

    Those who abuse power, are nothing but scumbags! The challenge of power is how to use it and not abuse it. The abuse of power that seems to create the most unhappiness is when a person uses personal power to get ahead without regards to the welfare of others, people are obsessed with it. You can take a nice person and turn them into a slob, into an insane being, craving power, destroying anything that stands in their way.
     
     
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    #29
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