Replies to post #101787 on 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.

[morrowinder]

FPG: So the payments ended in 2006...

How come I didn't see any change in the competitive landscape over the last 5 years? Wasn't this allegedly stifling anti-trust violation crushing AMD? The floodgates of AMD product never appeared at Dell. Partially because AMD itself FAILED to execute once it had some orders. So doesn't this support the idea that rather than Intel crushing AMD, AMD really just shoots itself in the foot over and over? That AMD never could support Intel-like volumes and was always limited by what its fabs could produce?

AMD hasn't appeared to gain any competitive advantages despite getting a billion from Intel, either. So what explains AMD's failure to succeed now that it has no anti-trust issues? In fact it has now shed its foundry and is in an even worse competitive position.

[Elmer Phud]

fpg

Are you suggesting that Intel is not allowed to competitively bid for business? That only AMD can undercut the competition's bid?

I.e. Ridiculous. As usual.

Exactly.