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NVIDIA says Intel Atom pricing is unfair

by Scott Bicheno on 19 May 2009, 10:02

Tags: Intel (NASDAQ:INTC), AMD (NYSE:AMD), NVIDIA (NASDAQ:NVDA)

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Gartner verdict

These types of comment from Intel competitors are likely to be even more frequent now that the precedent set by the EC fine has raised the stakes for Intel.

After the initial excitement over the amount of the fine, the aftermath of the EC ruling has been pretty subdued. While Intel does have to put aside around a billion dollars to cover the fine - it will appeal it vigorously and that process could take a while. Meanwhile Intel will be looking at how it goes about offering rebates to customers to make sure it stays on the right side of the EC's rulings.

It must be remembered, however, that many of the reasons for Intel's CPU dominance continue and will be unaffected by the EC ruling.

Gartner managing VP, Martin Reynolds, had the following to say in the aftermath of the EC ruling: "The decision is unlikely to make any significant change in market conditions. The Intel-AMD market share is likely to remain roughly aligned with manufacturing capacity, adjusted for technology capabilities.

"Intel will pay its fine, and carefully inspect its sales relationships to protect against risky influence. AMD does not receive any money from the fine, which accrues to the EU tax budget. And Intel's greatest challenge will remain market growth, not market share. However, the decision paves the way for civil cases against Intel, with the main case due to go to trial in Delaware in 2010."