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[C|NET] AMD takes exception to Intel's tablet rebates - Page 3

post #21 of 135
Quote:
"We have a competitor that's really taking a different approach in terms of revenue management," AMD Chief Executive Rory Read said during a first-quarter conference call on Thursday.

"They have a different philosophy on profitability sometimes...This idea of contra revenue is a foreign idea to us" he said.

Anyone could read this with straight face? biggrin.gif
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post #22 of 135
It is not even funny anymore the uninformed populace buying according to brand market share rather than their own incentives...
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post #23 of 135
Quote:
Originally Posted by sherlock View Post

and Intel won that battle hands down in term of sales, AMD's pathetic legal team couldn't even get 1/10th of Intel's profit from Court.
Intel got taken to the cleaners in a number of nations due to their practices of that time... They only did well in the USA because of the vagueries of US anti-trust laws... You see in the USA, in order for you to have a valid case you need a superior product being excluded from the market place. This is exactly what happened back when it was the p4 vs the athlon 64... intel basically was giving away millions of their chips in exchange for OEM pc makers to not use AMD chips. Because of that situation intel was able to keep AMD's superior product out of the hands of consumers; a clear violation of us anti-trust laws. HOWEVER intel stalled the case in court for almost 7 years... in that time they regained the tech edge, and by the time the case went to trial AMD no longer had a superior product... which basically invalidated their whole case; leaving AMD in a weak position. In the end they accepted a deal to drop the case out of court... basically, intel didn't want more bad press (they had lost some pretty ugly cases in other countries) and AMD didn't want to go home empty handed.

It's not a matter of a bad legal team... it's a matter of US anti-trust law being sorta convoluted. Because the lawmakers didn't anticipate a market that could change in 18 months like the pc market the anti-trust laws don't really work in this case. Yes, AMD had a better chip. Yes intel used it's market position and brand name to keep their superior product out of the market. Because of this, AMD never really penetrated the home pc market, and Intel was able to leverage their superior income to overcome their tech disadvantage. AMD meanwhile overextended itself building foundries in expectation of a growing market share that never happened, and has been unable to spend the capital necessary to compete with intel's chips... and of course because of US anti-trust law design, by the time the trial came around AMD had lost it's case, as they no longer had a superior product to offer.

Don't get me wrong, this isn't really a blanket defense of AMD, but to act like being the victim of illegal business practices was AMD's own fault is silly.

Now back to the topic at hand. Unless intel tells OEMs that they'll get 1 million chips free as long as 90% of thier mobile devices have intel inside (which is almost exactly what they did to AMD over a decade ago) then there is nothing illegal about giving away chips to OEMs. The act of giving the chips out for free isn't illegal. It's if they add an anti-competitive condition to those chips... such as only using intel processors in their tablets, that would make this an issue.
 
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post #24 of 135
Quote:
Originally Posted by DiNet View Post
 
Quote:
"We have a competitor that's really taking a different approach in terms of revenue management," AMD Chief Executive Rory Read said during a first-quarter conference call on Thursday.

"They have a different philosophy on profitability sometimes...This idea of contra revenue is a foreign idea to us" he said.

Anyone could read this with straight face? biggrin.gif

 

If only I understood what they mean.

   
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post #25 of 135
The reason intel is giving subsidies to companies is not because of the BT soc itself but the accompanying costs for the entire platform. Those are what are making BT a bad choice for OEMs.

Besides, in this market intel isn't the biggest company around. Not even close to it. They're also not a marketshare leader, not even close to it. They're not the company here with the most money, again, not even close to that. And yet people are claiming that intel is somehow using their monopolistic position here? They're a small company with less money reserves compared to the industry giants of the mobile market. They have absolutely no monopolistic position to abuse.
Quote:
Originally Posted by mtcn77 View Post

Lol! What? AMD SoC's need to sell more? They already shipped more than 10M considering the consoles alone. I didn't flinch an eyebrow when you stated your regular "Intel is the way to go for performance". AMD demonstrated a 3.5w Temash apu that ran League of Legends at 30 fps. Contrary to that, I haven't seen Intel campaign their game performance, ever.

The SoCs that we're talking about here need to sell more. Obviously console chips =/= SOCs for tablets and such.

And intel probably hasn't demoed league of legends on a tablet because the amount of people who actually play league of legends on tablets is miniscule. The majority wants a shiny device with long battery life and performance that will run their facebook and basic apps without any lag. And that isn't achieved by having a battery burning LoL capable GPU. Again, AMD SOCs have nice efficiency if you look at games etc. but the problem is that games isn't what tablets run most of the time.
Quote:
Originally Posted by Artikbot View Post

 No. They're paying them to use an Intel chip. Which is basically the same thing, only with nicer words.

Intel is lowering the cost of the whole BT platform because the associated costs used to be too high. And they're doing this because they want to sell more SoCs.

No one is paying anyone not to use SoCs from other manufacturers.
Edited by Alatar - 4/18/14 at 7:55am
 
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post #26 of 135
Quote:
Originally Posted by Alatar View Post

They have absolutely no monopolistic position to abuse.

 

You do not actually believe that do you.

   
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post #27 of 135
Quote:
Originally Posted by Artikbot View Post

You do not actually believe that do you.

I definitely do when it comes to the tablet and smartphone SoC market.

x86 CPUs no obviously not, but smartphones and tablets definitely.

How exactly do you think intel is going to use their superior size, marketshare and money reserves against tiny and helpless companies like apple and samsung?
 
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post #28 of 135
Intel's Never Settle Forever Ever Bundle!
post #29 of 135
Here we see Intel's gigantic, near-monopolistic nature in the x86 world really flex its muscle. They have such incredible reserves of money that they can afford to floor their prices to OEMs and grab marketshare from their competitors who can't afford such losses. If anything this is a testimony to their success.

Unfortunately for AMD fanboys such as myself, as long as there's no agreements made with these OEMs forcing them to use Intel chips in a certain percentage of or all of their product stack in exchange for these incredibly low prices (or free chips or paychecks or other crap like that rolleyes.gif) there doesn't seem to be anything truly anti-competitive. But, hey, who really knows what goes on behind closed doors.
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post #30 of 135
Quote:
Originally Posted by serothis View Post

You seriuosly believe that a company that is trying to gain market share and selling their product very cheaply == bribing? So does that mean AMD is bribing all of their customers with their never settle buddle and their very competitive pricing?

A company that has a relatively poor price/perf product is forbiden to reduce their price to make their product a better value? I'm not even sure where you're going with this.
You are funny.
First your analogies are incorrect. Second it depends on how cheap will intel sell those chips because it they are near production cost or below that we are looking at an uncompetitive behavior.
Even if AMD's gpu's or cpu are cheaper they still sell them at a healthy profit margin. AMD would have been bankrupted by now if they had very low profit gains per gpu or cpu sold. So yeas AMD's pricing is competitive but not anticompetitive.
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