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[C|NET] AMD takes exception to Intel's tablet rebates - Page 4

post #31 of 135
Quote:
Originally Posted by Artikbot View Post

You do not actually believe that do you.

Belief is not required, it is a fact in the tablet and mobile world.
post #32 of 135
Quote:
Originally Posted by Usario View Post

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.

But this is not true. Selling a product below cost (that is not a loss leader) is dumping and is considered 'predatory pricing' and is illegal in many countries. An easily googled example is dumping of steel below cost.
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post #33 of 135
Quote:
Originally Posted by Serios View Post

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.

A company is reducing their price to make their product more attractive. How is my analogy not correct?

As pointed out in other posts. Consoles sell at a loss. How come that's not considered uncompetitive?
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post #34 of 135
Quote:
Originally Posted by serothis View Post

A company is reducing their price to make their product more attractive. How is my analogy not correct?

As pointed out in other posts. Consoles sell at a loss. How come that's not considered uncompetitive?

Because consoles are loss leaders - the games played on the consoles are sold at profit. The consoles only exist to allow the sales of the games. Another example would be fast food - burgers and fries sold at close to or below cost - with the profit coming from the sales of beverages.
Edited by nub - 4/18/14 at 8:28am
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post #35 of 135
Quote:
Originally Posted by serothis View Post

A company is reducing their price to make their product more attractive. How is my analogy not correct?

As pointed out in other posts. Consoles sell at a loss. How come that's not considered uncompetitive?
What don't you understand? I already explained that it depends on how much you reduce the price. Do you want to say AMD reduced the price of their gpus at near production cost when they introduced the Never Settle campaign??

Both Ms and Sony sold their consoles at a loss. So how is that a problem or the same thing??
post #36 of 135
It's difficult to establish a foothold in an established market and expand market share. This is one method and it is wholly acceptable. It's still up to tablet makers to decide which SoCs are right for their products.
    
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post #37 of 135
Quote:
Originally Posted by nub View Post

Quote:
Originally Posted by serothis View Post

A company is reducing their price to make their product more attractive. How is my analogy not correct?

As pointed out in other posts. Consoles sell at a loss. How come that's not considered uncompetitive?

Because consoles are loss leaders - the games played on the consoles are sold at profit. The consoles only exist to allow the sales of the games. Another example would be fast food - burgers and fries sold at close to or below cost - with the profit coming from the sales of beverages.

It's a loss leader for products that they don't own (with a few exceptions).
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post #38 of 135
Quote:
Originally Posted by Serios View Post

Quote:
Originally Posted by serothis View Post

A company is reducing their price to make their product more attractive. How is my analogy not correct?

As pointed out in other posts. Consoles sell at a loss. How come that's not considered uncompetitive?
What don't you understand? I already explained that it depends on how much you reduce the price. Do you want to say AMD reduced the price of their gpus at near production cost when they introduced the Never Settle campaign??

Both Ms and Sony sold their consoles at a loss. So how is that a problem or the same thing??

Why is it ok for MS or Sony to sell at a loss but not ok for intel to do the same?
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post #39 of 135
To those of you mad about this, how do you differentiate between "good" price reductions to increase sales and "bad" price reductions to increase sales?
post #40 of 135
I don't understand why everyone just assumes that the chips are sold at a loss (compared to manufacturing cost).

Intel shouldn't be allowed to sell 100mm^2 Bay Trail SOCs for under $40 but AMD is allowed to sell ~350-400mm^2 SOCs to MS and Sony for $60-$80?
 
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