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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Charles R who wrote (68967)	8/16/1999 9:48:00 PM
From: tejek	Read Replies (2) \| Respond to of 1572751

RE <<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.>> Actually, I had read the same exact thing in a recent article, maybe by M. Burstiner. I can't remember the details but I will try to find it for you. Its alleged in the article that GTW got benefits for buying exclusively from intc. ted

To: Charles R who wrote (68967)	8/17/1999 11:24:00 AM
From: Steve Porter	Read Replies (1) \| Respond to of 1572751

Charles, Oh I agree that bundling is common. It was just the terms of this particular deal that I found interesting. I don't actually think there is anything illegal in this, so long as Intel is still making a profit on the total bundle. My point was that Intel's profit on the total bundle is likely lower than on previous bundles. If Intel wants to set the condition that to get a discount on their processors you must not have something else in your product line, I think that's perfectly legal. It's like Cadillac saying 'we won't sell you this car, if you carry mercedes as well'. The reason is you don't want to water down your brand name. I was just reporting it from an ASP point of view. The emphasis on 'NOT SELL'ing Athlons, was meant to show that Intel is actually really worried about good old Elmer's 'MIAthlon'.. ;) Steve