taltamir
Lifer
- Mar 21, 2004
- 13,576
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Originally posted by: Idontcare
Originally posted by: grndzro7
What happened to AMD was Intel using their screwed up rebate system and Billions of dollars in kickbacks to lock AMD out of the market.
And the result was AMD falling too far behind in R&D as a direct result.
Think about it.....in 1999 AMD came out with the Athlon...it smoked the P3 & P4. Vendors wanted it, AMD signed deals with a bunch of manufacturers. Intel Withdrew it's rebates and offered $$$ if the companies would stick with Intel...Hell Intel offered even more rebates if a company was 80% intel, and even more if they were Intel exclusive.
This persisted because Intel had so many companies in it's pocket they could manipulate prices and force the other companies to use Intel Processors because with the rebates it made no economical sense to switch to AMD even though they had a better product.
So in short Intel used it's monopoly of the market to lock out AMD.
7 years of AMD having a better product...1999-2006, resulted in nothing.
Aren't we supposed to pepper such accusations with the words "allegedly" throughout? Hasn't been proven in court yet that this is what happened to AMD's undoing.
If it did in fact occur on a scale that was large enough to impact AMD as speculated then yeah, it such to be the recipient of suck dirty pool.
At the same time if you have executive management that feel their value to the company is so tremendous as to warrant compensation to the tune of millions and millions while employees are getting laid off then you have a right to expect the same wonderful managers to be capable of competently and successfully manoeuvring the business through such challenging business conditions.
Rebate = paying less money... how exactly is making your product cheap enough so that it makes no sense to buy the competition wrong? lowering your price is not "locking out the competition". Telling someone "if you sell my competitor I will not let you sell my product and I will tell all my clients to not do business with you as well" is locking out the competition. (for example, the RIAA has agreements with radio stations that they will only license their songs to radio stations that sign an exclusivity contract, making it illigal for such radio stations to play songs not owned by RIAA memebers)