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To: Bald Eagle who wrote (27215)6/8/1998 5:20:00 PM
From: Dale M Champlin  Respond to of 33344
 
A note from Operation 3dfx
Intel Needs to Play Nice

By: Jeremy AllfordDate: 08-06-98 11:00 E1711:00:17 Category: Other newsSource: Yahoo Business


It seems that Intel is has been dumping their I740 on the market by dropping prices to between $7 to $26. Here's some info from the Wave report:
"Intel Creates Turmoil in 3D Market:

Intel is dumping I-740 chips on the Asian market and the impacts are being felt throughout the 3D industry. The I-740 chip is being sold in Asia in prices from $7 to $26. The lower prices come in bundling deals with Pentium II, a BX core logic chip set and the I-740. The WAVE Report has further confirmed that Pentium buyers are able to get more favorable allocations of Pentium IIs when I-740s are purchased. The large volume of I-740s in the Asian market has depressed the prices of the chips from virtually every 3D chip vendor. For example, the WAVE Report learned that 3Dlabs Permedia II chips are going for as low as $14. The prices for I-740 cards range from $38 to $55 for an 8MB version.

At the Computex show in Taipei, which closes on June 6, there is much resentment against Intel. Some card vendors speak of their complaints to Intel yet many remain silent in fear of not receiving the Intel products they need to sell in conjunction with their motherboard products. In the Intel booth there are 59 I-740 cards from 45 companies. This does not tell the full story as other companies selling I-740 cards are on the show floor. Margins are razor thin and companies have told the WAVE Report they are making from $.50 to $1.00 per card when they can sell them.

Don't think that any of this has gone unnoticed though. Here is a bit of info from a press release this morning from the FTC:

The Federal Trade Commission will likely vote Monday to sue giant computer chip maker Intel, charging it violated antitrust laws by using monopoly power to coerce customers and rivals.

Sources close to the case expect the commission's four members -- a fifth slot is empty -- will vote at a midday meeting today to charge that Intel abused market power by forcing other companies to surrender their trade secrets. (MORE HERE)http://dailynews.yahoo.com/headlines/technology/story.html?s=z/reuters/980608/tech/stories/intel_1.html