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

To: Saturn V who wrote (259602)	4/7/2009 10:09:35 PM
From: rudedog	Read Replies (2) \| Respond to of 275872

A similar situation put Microsoft behind the 8-ball in the DOJ consent decree. Since that time, MS has been unable to offer any volume discount EXCEPT on raw volume, and in some markets (certain GSA contracts for example) cannot offer volume discounts at all. They are required to publish the volume discount schedules, and are limited to a small number of bands (they currently have 4) to avoid creating artificial bands that only enable certain vendors. There are also significant restrictions on MDF or other specific programs, in particular any unit-based co-funding. I suspect that was one of the reasons for Intel moving away from 'Intel Inside' - they probably wanted to limit exposure if it came to be their turn in the barrel.

To: Saturn V who wrote (259602)	4/7/2009 10:27:15 PM
From: Elmer Phud	Respond to of 275872

My understanding is that the Japan issue was the advertisement rebate given for the Intel Inside campaign.Those contracts for the marketing rebate had a clause which seemed to exclude AMD, and Intel consented to modify its contracts, and paid a minor fine. As I remember, those rebates were only paid if the add was for intel products exclusively. Imagine Intel being expected to pay rebates on adds which included AMD products! Whatever the actual ruling, the penalty was more like a feather on the wrist than a slap. Nevertheless, for those who are committed to believing Intel is evil incarnate, it's a huge victory in their minds when they have nothing else to raise their spirits.