Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 203.14

-0.8%

Jan 9 9:30 AM EST

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To: Tenchusatsu who wrote (213074)	10/10/2006 4:24:30 PM
From: pgerassi	Read Replies (1) of 275872

Dear Tench: The agreements may vary widely, but the volume discount schedule can't. If you sell 1M CPUs to OEM A and OEM B, you must charge the same for both, even if they sell different amounts of CPUs overall (say 2M and 5M). Otherwise its preferential treatment and thus, illegal. The discount schedule has to be the same for all purchasers as well the prices. Shipping and other such charges can vary, but must be justifiable. Given that the breakpoints vary by company, is a red flag for antitrust violations. Its even been used to stop preferential pricing to internal versus external users. IBM service versus third party service on IBM mainframe parts for example. IBM lost that when it was taken to court. Pete

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