Intel lost $1bn on mobile in Q3 '14

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Idontcare

Elite Member
Oct 10, 1999
21,118
59
91
Who said that AMD is not targeted by their contra revenues.?

Intel's contra-revenue program is intentionally and specifically organized such that it has zero overlap or impact on AMD. I learned that straight from a higher-up at Intel who manages such things. Intel is extremely leery (internally) of doing anything financially that would bring on anti-competitive scrutiny when it comes to AMD. Those are the Intel's guy's words, not mine.

Now you don't have to believe me, but it is the truth and the reality of the contra-revenue situation which is why you have yet to hear even one AMD exec mention Intel's contra-revenue program as impacting AMD's market situation.

Given that AMD is scrambling to stay afloat in the face of eroding market share and more layoffs, do you really think they would elect to not mention Intel's contra-revenue program if it was in any way restricting, impacting or degrading AMD's existing market position or future market opportunities?

It should be very telling to the layperson, fanpersons and enthusiasts alike, that the experts (AMD in this case) who would know whether or not Intel's contra-revenue program has any impact on AMD have not made any such claims.

These claims of the CR impacting AMD are born in the minds of people who are in no position to know what the program does or who it impacts in the business realm.

As for me, I just went straight to the source and asked to be given a frank lay-of-the-land regarding the contra-revenue program, and what I was told by Intel holds up to the sniff test of what I see in reality. It is intentionally crafted to avoid AMD in all aspects because Intel knows if a single dollar of contra-revenue somehow had a knock-on effect of entering into the AMD/Intel competitive market then they are going to be hauled back into court and they want to avoid that at all costs.

Even still, something tells me this post will do little to dissuade the handful of folks who just want to believe something (CR is illegal and undermines AMD) that even AMD's execs won't argue about because it simply isn't true.
 

NTMBK

Lifer
Nov 14, 2011
10,269
5,134
136
Intel's contra-revenue program is intentionally and specifically organized such that it has zero overlap or impact on AMD. I learned that straight from a higher-up at Intel who manages such things. Intel is extremely leery (internally) of doing anything financially that would bring on anti-competitive scrutiny when it comes to AMD. Those are the Intel's guy's words, not mine.

Now you don't have to believe me, but it is the truth and the reality of the contra-revenue situation which is why you have yet to hear even one AMD exec mention Intel's contra-revenue program as impacting AMD's market situation.

Given that AMD is scrambling to stay afloat in the face of eroding market share and more layoffs, do you really think they would elect to not mention Intel's contra-revenue program if it was in any way restricting, impacting or degrading AMD's existing market position or future market opportunities?

It should be very telling to the layperson, fanpersons and enthusiasts alike, that the experts (AMD in this case) who would know whether or not Intel's contra-revenue program has any impact on AMD have not made any such claims.

These claims of the CR impacting AMD are born in the minds of people who are in no position to know what the program does or who it impacts in the business realm.

As for me, I just went straight to the source and asked to be given a frank lay-of-the-land regarding the contra-revenue program, and what I was told by Intel holds up to the sniff test of what I see in reality. It is intentionally crafted to avoid AMD in all aspects because Intel knows if a single dollar of contra-revenue somehow had a knock-on effect of entering into the AMD/Intel competitive market then they are going to be hauled back into court and they want to avoid that at all costs.

Even still, something tells me this post will do little to dissuade the handful of folks who just want to believe something (CR is illegal and undermines AMD) that even AMD's execs won't argue about because it simply isn't true.

Thanks a lot for the insight, IDC. Not often us laypersons get to hear inside gossip like that.

Any mention specifically of how they tried to avoid AMD? Does contra-revenue only apply to dedicated tablets, not 2-in-1s? Or only to Android devices, and not Windows ones?
 

jpiniero

Lifer
Oct 1, 2010
14,841
5,456
136
It definitely is, considering it makes it virtually impossible for AMD to sell any x86 tablets. OTOH I am not sure they would really get any anti-trust scrutiny considering they are doing the contra-revenue to get price competitive with ARM.
 

Abwx

Lifer
Apr 2, 2011
11,167
3,862
136
Intel's contra-revenue program is intentionally and specifically organized such that it has zero overlap or impact on AMD. I learned that straight from a higher-up at Intel who manages such things. Intel is extremely leery (internally) of doing anything financially that would bring on anti-competitive scrutiny when it comes to AMD. Those are the Intel's guy's words, not mine.

Before taking at face value what you heard from an Intel representative you should ask an AMD representative also if possible, but we ll get there in a few lines...

Now you don't have to believe me, but it is the truth and the reality of the contra-revenue situation which is why you have yet to hear even one AMD exec mention Intel's contra-revenue program as impacting AMD's market situation.

I believe that you re quoting the guy accurately but i dont believe his spin, would you expect him to tell you that they know that AMD is impacted ?.

Doing so would be to aknowledge that it s anti competitive practices.

Besides, are you sure that no one at AMD did point the thing.?

Let s see what Rory Read had to say about it :

When asked if he’d like to take AMD into tablets, Read’s response was that while this was obviously an important long-term market, Intel’s aggressive marketing practices (referred to as wrapping a $20 bills around every one of their processors) made it impossible for AMD to aggressively chase share in that space without incurring crippling losses.

I think it is clear enough, they were targeting the tablet market, they just didnt expect Intel to resort to thoses practices.


It should be very telling to the layperson, fanpersons and enthusiasts alike, that the experts (AMD in this case) who would know whether or not Intel's contra-revenue program has any impact on AMD have not made any such claims.

I would had expected better from you than resorting to the fanboysm straw argument, but let me explain why AMD says nothing, it s because if they start to sue Intel they have to ask the justice to check the contracts and accounts of their own customers, that is, they would put their own customers under the justice scrutinity and eventual condemnation,and as a consequence they will be bankrupt as a the retaliation from all thoses companies would be to cease buying their products, the management at Intel perfectly know this and they are taking advantage of AMD fragile financial situation to wage these anti competitive practices.

Besides it doesnt take a huge IQ to guess that the market is not infinitely extensible and that each Android tablet sold will result in an unsold X86 tablet anyway, they are just contracting the market hugely for their competitor as a mean to keep him from acquiring brand recognition in this market, they know too well that if Mullins start to be widespread there will be a growing sentiment that AMD mobile gear is better.
 

monstercameron

Diamond Member
Feb 12, 2013
3,818
1
0
Before taking at face value what you heard from an Intel representative you should ask an AMD representative also if possible, but we ll get there in a few lines...



I believe that you re quoting the guy accurately but i dont believe his spin, would you expect him to tell you that they know that AMD is impacted ?.

Doing so would be to aknowledge that it s anti competitive practices.

Besides, are you sure that no one at AMD did point the thing.?

Let s see what Rory Read had to say about it :



I think it is clear enough, they were targeting the tablet market, they just didnt expect Intel to resort to thoses practices.




I would had expected better from you than resorting to the fanboysm straw argument, but let me explain why AMD says nothing, it s because if they start to sue Intel they have to ask the justice to check the contracts and accounts of their own customers, that is, they would put their own customers under the justice scrutinity and eventual condemnation,and as a consequence they will be bankrupt as a the retaliation from all thoses companies would be to cease buying their products, the management at Intel perfectly know this and they are taking advantage of AMD fragile financial situation to wage these anti competitive practices.

Besides it doesnt take a huge IQ to guess that the market is not infinitely extensible and that each Android tablet sold will result in an unsold X86 tablet anyway, they are just contracting the market hugely for their competitor as a mean to keep him from acquiring brand recognition in this market, they know too well that if Mullins start to be widespread there will be a growing sentiment that AMD mobile gear is better.

what is stopping AMD from making a price competitive sku both against intel and the ARM-y?
 

Abwx

Lifer
Apr 2, 2011
11,167
3,862
136
what is stopping AMD from making a price competitive sku both against intel and the ARM-y?


To be competitive imply giving money and your chips, the product they have it and they expected to beat Intel in the tablet market with it.


AMD is establishing excellent momentum this year in the low-power, mobile computing market and with ‘Mullins’ and ‘Beema’ coming in 2014 we are not standing still,” said Mark Papermaster, AMD’s chief technology officer and senior vice president, during his closing keynote at APU13. “AMD aims to deliver a set of platforms in the first half of next year that will outperform the competition in graphics and total compute performance in fanless tablets, 2-in-1s and ultrathin notebooks.”
APU13 was in october 2013, contra revenues were announced one month later.

Intel strategy is to resort to theses anti competitive practices the time it take for them to realease Cherry Trail, at wich point they said that they ll stop this practice, it s an aknowledgment that their current offering is not competitive enough.
 

CHADBOGA

Platinum Member
Mar 31, 2009
2,135
832
136
but let me explain why AMD says nothing, it s because if they start to sue Intel they have to ask the justice to check the contracts and accounts of their own customers, that is, they would put their own customers under the justice scrutinity and eventual condemnation,and as a consequence they will be bankrupt as a the retaliation from all thoses companies would be to cease buying their products, the management at Intel perfectly know this and they are taking advantage of AMD fragile financial situation to wage these anti competitive practices.

That interpretation is simply not credible.

We saw in AMD's last court action against Intel that they had no qualms whatsoever dragging their own customers through the legal system.

Besides it doesnt take a huge IQ to guess that the market is not infinitely extensible and that each Android tablet sold will result in an unsold X86 tablet anyway,

What about ipads?:hmm:
 

Abwx

Lifer
Apr 2, 2011
11,167
3,862
136
That interpretation is simply not credible.

We saw in AMD's last court action against Intel that they had no qualms whatsoever dragging their own customers through the legal system.


Credibility mandate more than a few lines to brand someone not credible, as well as the capability to put things in perspective, i talked of 320 millions while in your exemple it was billions that were at stake, just Dell received 5bn rebates to not buy AMD gear and this in a matter of two years or so, given the amount i talked about AMD will not take the risk to sue Intel as they could only get a few hundreds millions while their customers could be fined along with Intel for billions that would end in states pockets and would be indeed useless for AMD, and even destructive if said customers retaliate the slightest way.



What about ipads?:hmm:

What the ipads have to do with this.?.
 

Enigmoid

Platinum Member
Sep 27, 2012
2,907
31
91
Credibility mandate more than a few lines to brand someone not credible, as well as the capability to put things in perspective, i talked of 320 millions while in your exemple it was billions that were at stake, just Dell received 5bn rebates to not buy AMD gear and this in a matter of two years or so, given the amount i talked about AMD will not take the risk to sue Intel as they could only get a few hundreds millions while their customers could be fined along with Intel for billions that would end in states pockets and would be indeed useless for AMD, and even destructive if said customers retaliate the slightest way.

What the ipads have to do with this.?.

Provide sources. Otherwise its just your words and they seem to be full of ....
 

Abwx

Lifer
Apr 2, 2011
11,167
3,862
136
Provide sources. Otherwise its just your words and they seem to be full of ....

I have the number from memory, this can be found googling, i ll provide the exact figures once i find the links, in the waiting some food for thoughts.

http://curia.europa.eu/jcms/upload/docs/application/pdf/2014-06/cp140082en.pdf

Notice that i had personaly knowledge of Media-Saturn case since 2001 while the lawsuit start at 2002, at the time a local Media Saturn responsible told me that they had 50% of their advertisements payed by Intel provided they put an Intel inside logo on their advertisement...and that no AMD CPU was used in the PCs they sold, they pushed the despicability as far as putting a single outdated K6 2 laptop as a prove that they did sell AMD gear, the guy told me that Intel sales forces were regurlarly checking if there was not an "unwanted beast" according to his own words.

Edit : so much for the full of........You should apply this term to the ones breaking laws at the expenses of the consumers.

Edit 2 :

The table below shows Dell’s MCP payment receipts from Intel according to SEC filings.



http://www.extremetech.com/computin...for-unfair-and-damaging-practices-against-amd
 
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Enigmoid

Platinum Member
Sep 27, 2012
2,907
31
91
I have the number from memory, this can be found googling, i ll provide the exact figures once i find the links, in the waiting some food for thoughts.

http://curia.europa.eu/jcms/upload/docs/application/pdf/2014-06/cp140082en.pdf

Notice that i had personaly knowledge of Media-Saturn case since 2001 while the lawsuit start at 2002, at the time a local Media Saturn responsible told me that they had 50% of their advertisements payed by Intel provided they put an Intel inside logo on their advertisement...and that no AMD CPU was used in the PCs they sold, they pushed the despicability as far as putting a single outdated K6 2 laptop as a prove that they did sell AMD gear, the guy told me that Intel sales forces were regurlarly checking if there was not an "unwanted beast" according to his own words.

Edit : so much for the full of........You should apply this term to the ones breaking laws at the expenses of the consumers.

Edit 2 :





http://www.extremetech.com/computin...for-unfair-and-damaging-practices-against-amd

1. Your statement is not is context and I took it out of context. It made no reference to the year. Since we were talking about recent events and BT to boot I assumed it was recent. My Apology. You should be careful to keep your posts in context though.

2. Adding it up I get 4232 M, over 4 years. Thus the original statement, 5B over 'two years or so' is incorrect.
 

Abwx

Lifer
Apr 2, 2011
11,167
3,862
136
1. Your statement is not is context and I took it out of context. It made no reference to the year. Since we were talking about recent events and BT to boot I assumed it was recent. My Apology. You should be careful to keep your posts in context though.

2. Adding it up I get 4232 M, over 4 years. Thus the original statement, 5B over 'two years or so' is incorrect.

You realize that i m not reading this litterature every day, i said that it was from memory and i was off by only 15% for the amount, though, it s the first time that i saw this doc actualy, i picked the 5bn and two years in an article a few years ago, perhaps it was 5 billion for all rebates over two years, neverless the extent of the damages just tell that Dirk Meyer, an engineer, was incompetent to estimate the real damage, prove is that Nvidia got as much for much less damages overall.
 

piesquared

Golden Member
Oct 16, 2006
1,651
473
136
Can we keep the topic on Intel and the present and stop arguing about 7+ years ago?

It is completely relevant to the thread, what intel did 7+ years ago did serious damage to AMD that they are still trying to recover from. These contra revenues that are costing a Billion plus a quarter do effectively the exact same thing. Mullins is a better chip than Bay Trail why would OEMs not want to use it.
 

Abwx

Lifer
Apr 2, 2011
11,167
3,862
136
Can we keep the topic on Intel and the present and stop arguing about 7+ years ago?

Things never really change, we re talking of subsides, 7 years ago it was rebates in exchange of exclusivity and currently, well, it s free chips and some money, that is, the 1bn/quarter "losses" (for about 1.5 years now) that is the topic of this thread, overall it s the same anti competive policy targeting the same competitor under the guise of battling ARM.
 

Phynaz

Lifer
Mar 13, 2006
10,140
819
126
The EU verdict has been appealed no? Therefore Intel hasn't been found guilty of anything.

AMD already got their billion dollars from Intel, they squandered it all away.
 

Abwx

Lifer
Apr 2, 2011
11,167
3,862
136
The EU verdict has been appealed no? Therefore Intel hasn't been found guilty of anything.

It was confirmed on appeal that they are guilty.

June 12, 2014

US chip giant Intel has lost its bid to fight off a €1.06bn fine levied by Europe's competition regulator in 2009 after the company was found to be muscling out rival AMD.
http://www.zdnet.com/intel-loses-fight-against-1bn-eu-antitrust-fine-7000030465/

Is that clear enough that we wont have no more to discuss this point.?.
 
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AtenRa

Lifer
Feb 2, 2009
14,003
3,361
136
Intel's contra-revenue program is intentionally and specifically organized such that it has zero overlap or impact on AMD. I learned that straight from a higher-up at Intel who manages such things. Intel is extremely leery (internally) of doing anything financially that would bring on anti-competitive scrutiny when it comes to AMD. Those are the Intel's guy's words, not mine.

Now you don't have to believe me, but it is the truth and the reality of the contra-revenue situation which is why you have yet to hear even one AMD exec mention Intel's contra-revenue program as impacting AMD's market situation.

Given that AMD is scrambling to stay afloat in the face of eroding market share and more layoffs, do you really think they would elect to not mention Intel's contra-revenue program if it was in any way restricting, impacting or degrading AMD's existing market position or future market opportunities?

It should be very telling to the layperson, fanpersons and enthusiasts alike, that the experts (AMD in this case) who would know whether or not Intel's contra-revenue program has any impact on AMD have not made any such claims.

These claims of the CR impacting AMD are born in the minds of people who are in no position to know what the program does or who it impacts in the business realm.

As for me, I just went straight to the source and asked to be given a frank lay-of-the-land regarding the contra-revenue program, and what I was told by Intel holds up to the sniff test of what I see in reality. It is intentionally crafted to avoid AMD in all aspects because Intel knows if a single dollar of contra-revenue somehow had a knock-on effect of entering into the AMD/Intel competitive market then they are going to be hauled back into court and they want to avoid that at all costs.

Even still, something tells me this post will do little to dissuade the handful of folks who just want to believe something (CR is illegal and undermines AMD) that even AMD's execs won't argue about because it simply isn't true.

Nobody ever said Intels Contra Revenue was directly aiming at AMD. But it directly affects the ability of AMD and ARM manufacturers to sell their products.

Intels Contra Revenue is not only targeting on SoC and BOM price reduction, Intel provides R&D to the OEMs/ODMs to design new products and/or port ARM products to x86. They also launched a new Center in China early this year to help with its Mobile business.

http://www.pcworld.com/article/2138...ub-to-fuel-its-mobile-processor-business.html

Just put it this way, Intel is paying to gain Market share, simple as that. Anyone implying that Contra Revenue has no impact on AMDs or ARM sales is mistaken to put it mildly.
You dont sell 40x times more SoCs than last year simple because your SoC is the best in the market. You dont become the second largest Tablet SoC provider within a year simply because you have the Best product.

Also, it takes time to start a lawsuit. Im sure that every big company affected by the Intel Contra Revenue has already mobilized its legal department.

It will also be very interesting to see if Intell will hold those market shares when and if they will stop the Contra Revenue.
 

III-V

Senior member
Oct 12, 2014
678
1
41
Just because you don't like something, does not mean it's illegal.
 

positivedoppler

Golden Member
Apr 30, 2012
1,112
174
106
Intel's contra-revenue program is intentionally and specifically organized such that it has zero overlap or impact on AMD. I learned that straight from a higher-up at Intel who manages such things. Intel is extremely leery (internally) of doing anything financially that would bring on anti-competitive scrutiny when it comes to AMD. Those are the Intel's guy's words, not mine.

Now you don't have to believe me, but it is the truth and the reality of the contra-revenue situation which is why you have yet to hear even one AMD exec mention Intel's contra-revenue program as impacting AMD's market situation.

Given that AMD is scrambling to stay afloat in the face of eroding market share and more layoffs, do you really think they would elect to not mention Intel's contra-revenue program if it was in any way restricting, impacting or degrading AMD's existing market position or future market opportunities?

It should be very telling to the layperson, fanpersons and enthusiasts alike, that the experts (AMD in this case) who would know whether or not Intel's contra-revenue program has any impact on AMD have not made any such claims.

These claims of the CR impacting AMD are born in the minds of people who are in no position to know what the program does or who it impacts in the business realm.

As for me, I just went straight to the source and asked to be given a frank lay-of-the-land regarding the contra-revenue program, and what I was told by Intel holds up to the sniff test of what I see in reality. It is intentionally crafted to avoid AMD in all aspects because Intel knows if a single dollar of contra-revenue somehow had a knock-on effect of entering into the AMD/Intel competitive market then they are going to be hauled back into court and they want to avoid that at all costs.

Even still, something tells me this post will do little to dissuade the handful of folks who just want to believe something (CR is illegal and undermines AMD) that even AMD's execs won't argue about because it simply isn't true.

I think the truth is somewhere in the middle and I wouldn't just go by "the source." After all, the source is still representing the company when communicating with you and he has to say Intel is all good and holy when it comes to business practices.

I believe what is most likely is that those contra revenues are real and Intel is giving away the chip. Not that I know much about dumping laws, but I think dumping laws only applies to overseas.

What is Intel's motive? Probably not directed towards creating an Anti competitive environment against AMD, but based on the fact that AMD has won a judgement against Intel and enough information came out in the past of how Intel strong arm multiple vendors to not use AMD, you can't blame people for being a bit suspicious of Intel this time around.

I don't believe Intel is directing their contra campaign against AMD, but I do believe AMD is caught in the crossfire between Intel and Mobile.

AMD is and has been trying to get into the tablet business which is the source of Intel's contra program. Their Mullin line and discovery tablet is proof and that tablet has been around even before the last CES show. You can make a valid argument that the tablet being just another form of computing device that AMD would naturally branch off to is serious hurt by Intel's giveaway campaign.

This part I'm not sure about, but prior to last year AMD has been doing pretty decent scraping by with low end jaguar core sales. The introduction of Haswell Pentiums and improve celerons did hurt AMD, but the sheer mass of Atoms I see being put in low end desktops and PCs now has to be hurting AMD's domain. I don't know if those atoms comes wrapped with a twenty dollar bill, but you probably know that more than me.
 
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