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Politics : Formerly About Advanced Micro Devices
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To: Steve Porter who wrote (68946)8/16/1999 7:25:00 PM
From: Charles R  Read Replies (2) of 1572780
 
Steve,

<Intel is literally GIVING Gateway free celerons on the conditions that they purchase x number of PII/PIII's and DO NOT sell Athlon Systems.>

The first part is believable the second part is not. Bundling is a common business practice when ASPs head south. It is smart because it alleviates ASP pressure while getting some additional revenue dollars. If the basis of the rumor is true then it is more likely to be "you buy 'x' PIIIs and we will give you a credit for 'y' dollars that can be used toward Celeron purchases". Now "x" can be defined in such a way that it is the entire high-end CPU usage by Gateway for the Christmas season but I doubt if Gateway would sign up for something like that.

It is a safe bet that AMD is doing the bundling deals w.r.t. K7s and K6s for some of the OEMs.

I don't see anything sinister here. Because of availability of chips or motherboards or whatever AMD could not close the deal. Some sales guy's commision is on the line. I am sure AMD is redoubling their efforts to fix that.

Chuck

P.S.: OEMs are known for routinely breaking the volume commitments in the bundling deals and chip supplier just swallow it because they can't afford to piss off OEMs - very common in this biz. Bottom line: AMD still has a shot.
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