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Technology Stocks : Advanced Micro Devices - Moderated (AMD)
AMD 248.73+7.2%3:32 PM EST
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To: aleph0 who wrote (165776)7/16/2005 4:56:33 PM
From: PetzRead Replies (1) of 275872
 
That 2003 LePage decision definitely changed the landscape. Apparently Intel's compliance department chose to ignore it, or they were over-ruled by higher-ups. I would love to see some of the internal emails discussing LePage at Intel, because there had to be a few honest lawyers there who thought Intel should change their rebate schemes. Certainly no coincidence that AMD picked lawyers who helped win that decision.

The volume-triggered all-or-nothing rebates/incentives will be easy to prove, as will harm to consumers. It is certainly true that AMD's average selling price to these OEMs is well below Intel's. If the all-or-nothing rebate was eliminated it is clear that Intel would be forced to just lower the price, and they would buy more AMD CPUs, at a lower price than the Intel CPUs that they replace.

Petz
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