Intel gave Dell 6 Billion dollars not use AMD chips?

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techs

Lifer
Sep 26, 2000
28,561
4
0
I'm not seeing anything wrong here at all. This is normal when you sign an agreement of this magnitude that incentives are offered to stay exclusive. Dell could use AMD to entice better deals from intel. This is totally normal and happens all the time.

But there's nothing wrong here, it's just business.
There is something wrong with it when you have 85 percent of the market and are using the money to perpetuate a virtual monoply.

Let's face it. At the time Intel was using the money to bribe Dell, AMD made far superior chips. Yet they barely gained market share. Which allowed Intel to jump back into the lead, and in effect, ended the cpu wars.
Bad for us.
 

TallBill

Lifer
Apr 29, 2001
46,044
62
91
Yes, it would be ironic. If you had any evidence to show for it.

The real question is why we Americans have forgotten what happens when companies that are hugely dominant in their field use their economic power to prevent competition.

The bad old days are here again.

What bad old days are you referring to?
 

techs

Lifer
Sep 26, 2000
28,561
4
0
What bad old days are you referring to?
The trusts of Standard Oil, U.S. Steel, etc, that prevented competiton not buy making or producing a better product or at a lower price, but by preventing competiton thru the use of their size and money.

Lordy, what DO they teach in schools these days?
 

darkxshade

Lifer
Mar 31, 2001
13,749
6
81
Kind of reminds me of how Sony paid SquareEnix for exclusivity of their franchise titles to perpetuate console sales yet I don't recall Sony ever getting hit for that. How does this work exactly?
 

TallBill

Lifer
Apr 29, 2001
46,044
62
91
The trusts of Standard Oil, U.S. Steel, etc, that prevented competiton not buy making or producing a better product or at a lower price, but by preventing competiton thru the use of their size and money.

Lordy, what DO they teach in schools these days?

I know all about those companies and baited you into answering my question.

Price to consumers fell by over 50% while Standard Oil rose to power. Sure they used unlikeable business practices but in the long run they provided a much better service to Americans for a MUCH lower price.

Cry all you want, have you seen how ridiculously cheap and powerful computers are these days?
 

GlacierFreeze

Golden Member
May 23, 2005
1,125
1
0
Cry all you want, have you seen how ridiculously cheap and powerful computers are these days?

And they could be even cheaper and more powerful IF Intel allowed AMD to be more competitive.

How cheap would they be if Intel kept doing this nonsense and caused AMD to shut their doors? I don't want to even think about how expensive computers would be with only one key producer/supplier.

I can't believe you're trying to defend Intel's anti-competitive behavior.
 

SunSamurai

Diamond Member
Jan 16, 2005
3,914
0
0
Why is this any different than DirectTV being the only Sunday Ticket Carrier. Xbox360 being the only game console with Netflix or AT&T being the only iphone carrier.

Is it because it wasn't disclosed to the public?

This is no different than giving them a price discount such that offering the competitor is not worthwile which seems to happen all the time in business.



Question: Are you stupid?D:
 

LTC8K6

Lifer
Mar 10, 2004
28,520
1,575
126
We get a huge discount here for exclusive use of Honeywell temperature controllers. Every controller mfg offers such agreements. The more controllers we buy, the better the deal gets. Until this agreement ends, other controller mfgs are basically locked out of our business.

We also have customers who will not order from us unless we agree to use their components when we build. GE comes to mind. Have to use GE motors, contactors, switches, etc., to get the GE order.
 

SunSamurai

Diamond Member
Jan 16, 2005
3,914
0
0
I'm not seeing anything wrong here at all. This is normal when you sign an agreement of this magnitude that incentives are offered to stay exclusive. Dell could use AMD to entice better deals from intel. This is totally normal and happens all the time.

But there's nothing wrong here, it's just business.

Things trolls say for 1000, Alex

OMG THE DAILY DOUBLE!
 

spidey07

No Lifer
Aug 4, 2000
65,469
5
76
Things trolls say for 1000, Alex

OMG THE DAILY DOUBLE!

I don't know what you're talking about. I've signed many such exclusivity agreements to get better discounts and rebates from suppliers. It's just business. And like I said you can use their competitors against them to get better discounts. It's up to dell to decide if they want to sign such an agreement or not...well technically it's up to both parties, but you get the idea.
 

ElFenix

Elite Member
Super Moderator
Mar 20, 2000
102,425
8,388
126
We get a huge discount here for exclusive use of Honeywell temperature controllers. Every controller mfg offers such agreements. The more controllers we buy, the better the deal gets. Until this agreement ends, other controller mfgs are basically locked out of our business.

We also have customers who will not order from us unless we agree to use their components when we build. GE comes to mind. Have to use GE motors, contactors, switches, etc., to get the GE order.

exclusivity discounts aren't illegal. exclusivity discounts where you use your market power to lock out the only other competitor in your field (who has nearly an order of magnitude less market share than you) and thereby attempt to monopolize are illegal.


I don't know what you're talking about. I've signed many such exclusivity agreements to get better discounts and rebates from suppliers. It's just business. And like I said you can use their competitors against them to get better discounts. It's up to dell to decide if they want to sign such an agreement or not...well technically it's up to both parties, but you get the idea.
read the thread.
 

Slew Foot

Lifer
Sep 22, 2005
12,381
96
86
And EA gave the NFL a pile of money not to let anyone else make NFL video games. Big f'n deal happens all the time. Some asshole in NY wants to make some money.
 

TallBill

Lifer
Apr 29, 2001
46,044
62
91
And they could be even cheaper and more powerful IF Intel allowed AMD to be more competitive.

How cheap would they be if Intel kept doing this nonsense and caused AMD to shut their doors? I don't want to even think about how expensive computers would be with only one key producer/supplier.

I can't believe you're trying to defend Intel's anti-competitive behavior.

Honestly, I'd probably enjoy this conversation in a classroom setting. But big business and greed isn't necessarily a bad thing. It does in fact provide better and cheaper services.

In this particular case, sure it's appalling and yes I agree that competition is good for the marketplace.

But don't give me the stereotypical "corporations are evil" bullshit and then ask "what do schools teach" in a condescending manner.
 

zephyrprime

Diamond Member
Feb 18, 2001
7,512
2
81
Well, this just confirms what everyone suspected. That Dell was being paid not to use AMD back in the opteron days.
 

techs

Lifer
Sep 26, 2000
28,561
4
0
I know all about those companies and baited you into answering my question.

Price to consumers fell by over 50% while Standard Oil rose to power. Sure they used unlikeable business practices but in the long run they provided a much better service to Americans for a MUCH lower price.

Cry all you want, have you seen how ridiculously cheap and powerful computers are these days?
And I knew you would post that.
Computers were advancing in speed far faster when there was real competition between Intel and AMD.
As to Standard Oil, prices went down as more efficient drilling and transporting methods were invented. You are nuts if you think monopolies don't exist to get more for their product than they would with competition.
And that's why this country is in trouble. We have let too many industries become controlled by two few companies. Even when you have 2-3 big companies that still is a situation where they collude to fix prices artificially high.

Unbelievable that anyone would actually argue for monopolies. I blame our poor educational system and corporate propaganda.
 

TallBill

Lifer
Apr 29, 2001
46,044
62
91
And I knew you would post that.
Computers were advancing in speed far faster when there was real competition between Intel and AMD.
As to Standard Oil, prices went down as more efficient drilling and transporting methods were invented. You are nuts if you think monopolies don't exist to get more for their product than they would with competition.
And that's why this country is in trouble. We have let too many industries become controlled by two few companies. Even when you have 2-3 big companies that still is a situation where they collude to fix prices artificially high.

Unbelievable that anyone would actually argue for monopolies. I blame our poor educational system and corporate propaganda.

I blame you for having an unhappy life for worrying to much about this stuff. I'm gonna get on with my day now. Really I don't care if either of us is right, I'm not a policy maker or politician.

*adds techs to ignore list*
 

techs

Lifer
Sep 26, 2000
28,561
4
0
I blame you for having an unhappy life for worrying to much about this stuff. I'm gonna get on with my day now. Really I don't care if either of us is right, I'm not a policy maker or politician.

*adds techs to ignore list*

Yep. When your wrong just pretend it never happened.
Why do I know TallBill will be back arguing for monopolies the first chance he gets?
Because that's his M.O.
 

LTC8K6

Lifer
Mar 10, 2004
28,520
1,575
126
This deal requires at least 2 participants, so why isn't Dell being sued? Dell apparently agreed to lock out AMD.
 

Ruptga

Lifer
Aug 3, 2006
10,247
207
106
they will make more money after fines when AMD closes their company. sleezy but it works

AMD doesn't even have to die, as long as Intel gets a leg up in the market it will be worth it.

Also, from the sound of it what's in the article may or may not be illegal. Manufacturers give volume discounts all the time, and they can change those discounts whenever they want.
 

BoomerD

No Lifer
Feb 26, 2006
63,353
11,725
136
<sigh> Business as usually between two large, evil corporations...

Seriously, as shady as this may seem, it's not really that out-of-the-ordinary with the exception of the market share that Intel has.

IF NY wins this lawsuit, will the other PC manufacturers start suing Intel for giving Dell better terms?

Myself, I don't really care about this at all. Intel and AMD have both used plenty of dirty tricks in the "processor wars" over the years. In fact, something I read in one of the computer magazines in the 90's about AMD poaching some of Intel's talent and trying to get around the non-disclosure agreements pissed me off more than this story does.

I've never bought an AMD processor, never bought an AMD video card, (I do have an ATI card, but it was bought before the "merger."

It's Intel Only in this household...
 

techs

Lifer
Sep 26, 2000
28,561
4
0
What law are you implying Dell broke?
Actually I don't think the law would prohibit Dell from taking the money, only from Intel offering it.
IIRC it is illegal for a company with a dominant position in a market from using financial incentives to eliminate competition.
 

ElFenix

Elite Member
Super Moderator
Mar 20, 2000
102,425
8,388
126
This deal requires at least 2 participants, so why isn't Dell being sued? Dell apparently agreed to lock out AMD.

dell doesn't have market power.

AMD doesn't even have to die, as long as Intel gets a leg up in the market it will be worth it.

Also, from the sound of it what's in the article may or may not be illegal. Manufacturers give volume discounts all the time, and they can change those discounts whenever they want.
again, there is a difference between a volume discount and an exclusivity discount for a firm with big time market power.
 

Vette73

Lifer
Jul 5, 2000
21,503
8
0
This deal requires at least 2 participants, so why isn't Dell being sued? Dell apparently agreed to lock out AMD.


They are. I know they are being sued by share holders right now, unless it has been settled.
The reason is Dell was making money on kick backs, not its operations. As such the share price should not as been as high and also the information dell released would then be tainted.


"Shortly after the resignation of its chief executive, Dell reeled from another blow as a group of investors filed a lawsuit alleging that the company had used illegal accounting methods to hide secret kickback payments paid by Intel.
The payments from Intel were meant to ensure that Dell used only Intel processors in its PCs, according to the suit. The investors filing the suit Wednesday asked the U.S. District Court in Austin, Texas, to give the case class-action status, saying that Dell shareholders were harmed when Dell inflated its profits."
 
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