Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Advanced Micro Devices - Moderated (AMD) -- Ignore unavailable to you. Want to Upgrade?

To: Tenchusatsu who wrote (213074)	10/10/2006 4:24:30 PM
From: pgerassi	Read Replies (1) \| Respond to 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