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Politics : Formerly About Advanced Micro Devices

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To: Goutam who wrote (85432)1/6/2000 4:01:00 AM
From: Petz  Read Replies (1) of 1572499
 
Isn't it clear from what Gateway said today that they were contractually prohibited from buying processors from AMD? Thats what the word "exclusive" means, isn't it? And don't we know that Gateway had made a hard decision to use the Athlon prior to Christmas, but then suddenly changed their mind? (email evidence, website tech support info and MaximumPC Mag "news" article)

They would not have made a solid decision to use the Athlon if Athlons or motherboards were not available. So that can't be an excuse for changing their minds. AMD could easily have temporarily reduced supplies in the distributor/DIY channel for 500-550 MHz Athlons, and motherboards are plentiful. It must have been:
1. $20M cash from Intel]
2. Threat from Intel to reduce supplies according to the "excluse source" contract.

Probably both of the above.

I think Intel is on very shaky legal ground. Most states have "restraint of trade" laws that prohibit one company from threatening another based on business dealings with a third party (AMD), especially if a company makes promises that later turn out to be false.

Petz
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