twitter's Journal: AMD Claims Intel Monopoly Earned $60 Billion Unfairly

AMD was was happy to help an EU investigation into Intel monopoly practices by funding a study:

... manufacturers could gain more than $80bn over the next decade if the chip market was "open to competition". From that figure, consumers would save at least $61bn over the period and PC makers would save $20bn.

... Intel has recorded profits of $141.8bn during a 10-year period. From there, the firm subtracted the costs of capital ($54bn, or 9.94 per cent). The result is an economic profit of about $88bn. $88bn profit equates to an economic return of 16.01 per cent. ... the firm said it gave Intel a "generous assumption" that five per cent ($28bn) of its economic return was attributable to "legitimate advantages." This gives the resulting $60bn monopoly profit figure.

It continues that the figure stands in stark contrast to the economic returns of 489 other public companies examined. Intel's return was higher than 99 per cent of the large companies, including big names such as Pfizer, ExxonMobil and Target. Only four of the 489 companies examined earned a larger economic return of 16 per cent. Those companies are Microsoft (38.25 per cent), UST Inc. (28.54 per cent) and Coca-Cola (16.58 per cent). ERS gives an additional jab, noting each of the companies have been associated with antitrust determinations.

Intel claims the study is "wild speculation". In related news, Intel claims they do not have a mater to servant attitude.