Advanced Micro Devices - Moderated (AMD) Message Board

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Technology Stocks : Advanced Micro Devices - Moderated (AMD)

AMD 231.83

+1.7%

Jan 16 9:30 AM EST

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To: graphicsguru who wrote (237490)	7/27/2007 10:49:27 PM
From: combjelly	Read Replies (1) of 275872

"For example, Coke can sign an exclusive deal with McDonalds. Is an Intel exclusive with Techmart worse than a Coke exclusive with McDonalds? Not obvious." It is pretty different. For one, McD's approached Coke about the deal, not vice versa. In addition, if McD's decides to put in Pepsi, Coke could not do a thing. Even raise prices as long as volume commitments are made. And finally, McD's is on the same discount schedule as anyone else. You buy X number of figals(those cylinders hold 5 gallons of product) of postmix and you pay Y dollars. There might be a little fudging with advertising, promotions and other rebates, but the same deal is offered to others. Both companies went through the exclusive deal wringer decades ago. Because they used to pay retailers to limit shelf space for competitors and do many of the things that Intel is accused of. Read up on the Cola Wars sometime. Both wound up in deep hot water and paid huge fines. And they bend over backwards to avoid even the appearance of doing those things. For these reasons, what is done with McD's is in almost every way different than what was done with TechMarkt.

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