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


To: Sarmad Y. Hermiz who wrote (241964)10/6/2007 1:47:59 AM
From: fastpathguruRespond to of 275872
 
But now I am wondering, is Intel accused of using tailored rebates ? Or tailored marketing funds ?

In the US case, yes, the tailored rebates and share-based MDFs are among the allegations.

In the EC case, the objections are even more ominous:

edn.com

"""
The EC said that its SO is based on evidence collected in a thorough, multi-year investigation of Intel's business practices first launched in 2001. The commission based its case on evidence seized from Intel offices and collected from PC manufacturers across Europe.

According to the EC, Intel's abuse of its dominant position has been threefold: Intel has provided "substantial rebates" to original equipment manufacturers (OEM) that agree to stipulations that they obtain all, or the great majority, of their CPU requirements from Intel; Intel has made payments in order to induce an OEM to either delay or cancel the launch of a product line incorporating an AMD-based CPU; and Intel has offered CPUs on average below cost in the context of bids against AMD-based products for strategic customers in the server segment of the market.
"""

BTW, Intel's response to the EC charges:

arstechnica.com

In a statement released Friday, the chipmaker said that the case is based on AMD's complaints to European antitrust authorities rather than arising from consumer discontent with its practices in Europe.

Is it any wonder that consumers might not know they're not getting the best deal possible? I mean, "all rebates are good", right?

Wrong... There are smart people here who STILL haven't figured out the concept of tailored rebates yet, even after having it spelled out to them.

fpg