Intel Corp (INTC)

[wbmw]

"Meet Competition Programs are exactly what the name says," Intel spokesman Mulloy emailed back, "a program whereby Intel provides discounts in response to bids by competitors." He declined further comment.

When an OEM comes to Intel asking for a price reduction in response to a competitive bid, it's absolutely legal for Intel to reduce the price to compete, as long as that price doesn't fall below cost.

Intel can also refuse to lower the price, and the OEM can choose to buy from Intel's competitor. If the competitor's product is lower performance or less efficient, that goes along with that choice.