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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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AMD gloating

So it seems that it's the precedent set, rather than the punishment itself, that could be most damaging to Intel.

As well as the civil action alluded to by Gartner, the New York attorney general has been looking into Intel's business practices since the start of 2008. These US cases are bound to be influenced to some extent by similar investigations in Europe and the Far East.

The other worry for Intel will be public opinion. If people start to perceive Intel as a company that fights dirty, the support its main competitor AMD gets (and counts on) as the plucky underdog could well grow, and influence the buying decisions of consumers and system builders alike.

AMD wasted no time in rubbing salt in the wound on the day of the announcement and its execs have blogged about little else since. AMD even has an entire website dedicated to documenting Intel's legal struggles.

However, while a degree of triumphalism is understandable from AMD, which has been accusing Intel of anti-competitive behaviour for over a decade, it needs to be wary of over-doing it at this time. The ruling does nothing to address the many internal issues AMD still has to resolve and too much overt gloating could undermine its hard won public sympathy.

 



HEXUS Forums :: 3 Comments

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OK so let me get this straight…

An OEM can buy at Atom + 945 for $25, or an Atom alone for $45 (crazy crazy Intel…)

So if they want to make an ION device why not simply buy the $25 combo, put the 945 in the recycling and use the Atom? They have to pay the same for the ION chipset anyway…
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An OEM can buy at Atom + 945 for $25, or an Atom alone for $45 (crazy crazy Intel…)
I understood it to mean that an Atom alone is $45, and Atom + chipset is $25 plus the price of the chipset, but it's certainly not clear which of those is meant. If it's the former then something is certainly wrong with that picture - if it's the latter then it's on the dubious edge of acceptable bundling rebates, I guess…
Deleted
OK so let me get this straight…

An OEM can buy at Atom + 945 for $25, or an Atom alone for $45 (crazy crazy Intel…)

So if they want to make an ION device why not simply buy the $25 combo, put the 945 in the recycling and use the Atom? They have to pay the same for the ION chipset anyway…

No, the price of each Atom unit is reduced to $25 if an Intel chipset is bought with it. So say the 945/ICH7 chipset combo is $15 (or whatever it is), making a total of $40. There you're saving $20 on the CPU alone, and you effectively get a chipset for free and a $5 rebate. Which pretty much kills any hope of saving on the CPU by sending the chipset to the recycling yard if you go Ion, because the price will still be too high.

I agree with nVidia here, that is an unfair practice.