Intel Accused of Giving Dell $6 Billion in Perks

[JMcEntegart]

Intel is accused of giving PC makers substantial amounts of money in exchange for exclusivity.

Intel Accused of Giving Dell $6 Billion in Perks : Read more

 

[BoxBabaX]

Wow, this looks very bad for Intel.

 

[nforce4max]

That explains the flood of Pentium4s that so saturated the PC market and is impossible to avoid unless you only work on macs.

 

[Parsian]

Suffer Intel, you don't deserve where you are. When AMD was ahead in performance, they werent gaining anything because Intel's practices.

 

[war2k9]

Dell should thank Intel for the money.

 

[cruiseoveride]

We all know Intel is Evil

 

[ominous prime]

Wow, talk about shady business practices.

 

[830hobbes]

NICE! I'm no AMD fanboy, just a gamer who likes good competition to lower prices. Also, as an AMD stockholder this is awesome. Intel is ridiculous with this shit.

 

[hellwig]

Was it Tuan that tried defending this practice? Something about how its the OEMs choice what processors to use in their computers? Funny, it seems the government agrees with us consumers, that its out choice what processors we want to use, and that its illegal for Intel to basically buy off the OEMs, preventing their competitor from reaching market int he first place.

Of course, it doesn't seem like Intel cares one way or another, they already got busted for this in the first place in the 90's, which led to AMD keeping their x86 license permanently. Maybe this time AMD gets free license to the latest Nehalim tech too.

 

[tipoo]

Apple STILL uses exclusively Intel chips across their entire lineup. Whats with that?

 

[7amood]

since there is not much competition form AMD, I hope they won't try to get the 6Bs back from us in the coming years.

 

[uberlaff]

Damn... I'll start selling Intel PC's if they pay me more than I'm actually making on the PC's!

 

[landerx74]

This is retarded! You could also say Intel gave Dell reabtes for buying more chips! BIG DEAL! How is that different than a retailer saying buy 1 get 1 free or buy 2 and get 10% off. AMD could have done the same thing.

 

[soky602]

If only people would think of it as buy one get one or its 50% off a bundle deal on this item, it won't sound so bad.

 

[bill gates is your daddy]

$6 billion paid out over 5 years. $1.2 billion per year. Are you catching that? $1.2 BILLION a year. All the lying and manipulating and monopolizing and any other corporate nastiness that Intel wallows in they still were able to give away $1.2 billion dollars every year.

Show of hands…who here still believes that the i7-975 Extreme Edition is worth $1000??? Any hands? How much is Intel marking up to cover $1.2 billion in bribes? 100%? 200%? 500%??? Who really knows.

They should go around to all the companies that accepted the bribe and take out $6 billion then head over to Intel and take out another $6 billion then drive it over to AMD and leave $12 billion on their doorstep with a note that says “have fun!”

I was talking myself into purchasing Intel for some machines I was about to build but I clearly see me purchasing AMD all the way.

 

[megamanx00]

Can't say I'm really surprised. Giving a partner incentives for selling so much is one thing, but giving them incentives, especially big ones, to not use a competitors product is an anti trust issue, especially when you're a monopoly.

 

[tester24]

[citation][nom]landerx74[/nom]This is retarded! You could also say Intel gave Dell reabtes for buying more chips! BIG DEAL! How is that different than a retailer saying buy 1 get 1 free or buy 2 and get 10% off. AMD could have done the same thing.[/citation]

It's called incentive, saying "hey you buy more of my chips you can get X% discount and sell them at the same price and make a lot more $"

AMD couldn't do this because Intel has polluted the market with their chips so AMD couldn't even get a foothold.

 

[nekatreven]

I hate to say it (and I usually don't) but someone dropped the ball on this one.

This article:
http://money.cnn.com/2009/11/04/technology/cuomo_sues_intel_antitrust/index.htm

has been up for days now.

I wouldn't be so critical if it weren't for the fact that I also emailed in a news tip on it two days ago.

These allegations are identical to what Intel got in trouble for in the EU, and this investigation has been going on for years in the US. It isn't new...we yanks just like to call it antitrust, and the exact laws vary a little. The real story goes beyond lawsuits and fines from the state of NY (which still has more reach than it might sound). The biggest part is that Intel is basically still a US company, and at least for these parts of the company...if this catches the FTC's eye they could force Intel to reorganize however they see fit (like what faced Microsoft years ago)

 

[Guest]

Finally! now all those idiots that were pissed off at the EU for fining intel and ranted all their patriotic american crap can see that it's not the EU who is the problem but intel.

 

[soky602]

[citation][nom]tester24[/nom]It's called incentive, saying "hey you buy more of my chips you can get X% discount and sell them at the same price and make a lot more $"AMD couldn't do this because Intel has polluted the market with their chips so AMD couldn't even get a foothold.[/citation]
If you own your own business you wouldn't shop the cheaper price if it meant making money.

 

[alterecho]

i don't think hp falls under this category. Got a hp laptop with
amd turion x2 processor. Glad i got this. Offers good performance
for the its price.

If you ask me, manufacturers would make a killing if they opt amd
becuse it brings the laptops to an affordable price range so many
people can buy it. The intel version of the same laptop would have set me back by ~$400.

 

[bill gates is your daddy]

Good Lord people. This isn't some whimpy "buy 2 get 1 free" deal. This is "buy one, don't buy AMD, receive $6 billion dollars"

Drop your idiotic fanboyism for 5 seconds and really look at what is happening. It's a monopoly and its wrong. Just as wrong as if AMD was given the deal and they were trying to crush Intel out of the market.

Stop playing favorites and just admit this business practice is wrong for everyone and also hurts the consumer.

 

[itakou]

Isn't this the same as how we see certain stores (movie theaters, schools, malls) only selling coke, while others only sell pepsi?

The soda companies use similar practices and have contracts for stores to only sell their products.

 

[presidenteody]

well, i don't think offering rebates is a bad thing! I like rebates from newegg, but i don't thing newegg should be fined for offering me and others rebates so that i continue to shop with and sometimes exclusively with newegg. Its not shady it called business. I understand we are leaning to a more finger pointing practice in these poor economic times, but all i am saying is that rebates are very questionable to be a unlawful practice, it is anti-competitive but dell had a choice and dell felt as if going intel only was only best for its clients thus for its bottom line($). which dell is good at, given they are the largest pc producer, i build my own AMD systems because they are a much better deal and would hate to see AMD file for Chapter 11, but that is business and the strong will survive. AMD NEEDS TO GET A BETTER COMMERICAL/PR DEPARTMENT. I dont think i have ever in my life seen a amd commercial.

 

[ravewulf]

Wouldn't be surprised at all. Has anyone noticed that the vast majority of computers advertised in sales circulars, newsletters, and ads all have the Intel logo?

Intel needs to stop being a prick and AMD needs to stop taking it and work on stepping up their marketing.