Intel gave Dell 6 Billion dollars not use AMD chips?

[techs]

LOL.

Intel fanboys vs. AMD fanboys.

Eh. More like corporate fanboys versus the rest of us.

 

[Phokus]

Train: I don't know what to tell you. The AT&T/Verizon/TMobile/Sprint pretty much split their market share.

The Iphone had a 10% smartphone marketshare in the 1st quarter of 2009.

That's not a monopoly in any sense of the word.

Intel has an 80% marketshare i think.

You people seem to have a short memory and forget that AMD had a superior product for quite a while (they WERE the darling of anandtech), but because of Intel's anticompetitive practices, they were unable to grow their marketshare.

 

[ElFenix]

But that's the whole point right? ... if you're able to give an OEM such a better pricing, then more power to you. Intel invests a lot of R&D money to drive to a smaller technology now, to drive better yields, to drive development of better process tools ... all to lower the cost/wafer. If they're able to achieve a lower cost/wafer why can't they take advantage of that?

Let's say it costs Intel $20 to produce one chip. Without any preferential treatment, they would normally sell it for $50, but with a exclusivity agreement they're selling it for $25 instead, is that illegal? If they sold it for say $19, then I would agree with you, it's illegal, they are selling below what it costs them to produce and is trying to undercut the competitor and raise the price afterwards. But if they're selling it above cost, taking advantage of their lower cost/chip and taking a hit on their profit margin then why is it illegal?

because they were paying the OEM to limit the competitor's access to the OEM. they weren't taking advantage of a lower pricing structure. if they had just sold chips into the market selling for $50 for one chip and then volume discounts to somewhere above costs simply based on volume then there wouldn't be anything wrong with that. but that's not what intel was doing, and manufacturing advantages were not why intel was giving discounts, according to the complaint.

there is an argument by some economists that if intel wants to lose money in order to keep a competitor down then they should be able to do that because eventually they'll either have to raise prices (thereby encouraging competition with profits) or go out of business. they also argue that intel wouldn't be able to recoup those discounts. of course, that ignores that there is a ginormous amount of r&d involved in making a competitive x86 microprocessor and getting it built, so it's likely that if intel were to shut down its only real competitor in that market, no one else would ever bother trying it even though intel makes big profits. so they're recouping because they don't have to keep prices at competitive levels once they've disciplined the market.

 

[da loser]

AMD just entered into a "licensing agreement" with Intel.

sounds like Intel is settling the lawsuits and paying AMD a bunch of money.

 

[darkswordsman17]

AMD just entered into a "licensing agreement" with Intel.

sounds like Intel is settling the lawsuits and paying AMD a bunch of money.

Yeah, $1.25 billion. Could be win-win, as Intel agrees to play fair and pay AMD a pretty low (but still significant) amount, AMD gets money, and hopefully taxpayer money isn't wasted. I'm not entirely sure that this will resolve the issue, as I thought once anti-trust case was initialized by the government that it couldn't just be settled, at least not by the companies involved.

 

[techs]

Yeah, $1.25 billion. Could be win-win, as Intel agrees to play fair and pay AMD a pretty low (but still significant) amount, AMD gets money, and hopefully taxpayer money isn't wasted. I'm not entirely sure that this will resolve the issue, as I thought once anti-trust case was initialized by the government that it couldn't just be settled, at least not by the companies involved.

It could be AMD is desperate for cash and is willing to take a small amount now instead of waiting for only the possibility of a big payday later.
I still think the penalty should fit the crime, and Intel should turn over all its manufacturing know how to AMD so both companies can start equal.
Let the best company win!