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Intel says marketing strategy not determined by AMD settlement

Sources in Taiwan's notebook industry are claiming that one consequence of the recent agreement between Intel and Advanced Micro Devices (AMD) to end all outstanding legal disputes between them is that Intel has significantly reduced its market development fund (MDF) budget.

The sources indicated that Intel has reduced its MDF budget, whereby Intel provides refunds to vendors that promote the Intel brand, and is instead using more direct methods, such as through pricing, to garner support from its customers. To support the claims, the sources cited the fact that Intel is not currently participating in IT Month, a local Taiwan consumer IT trade show that it has participated in year's past.

When asked to respond to the claims, Intel stated that the impression given by the sources is inaccurate.

Intel stated that there is no causal relationship between the settlement and its decision not to physically participate in the Taiwan IT Month Show. Intel said the decision not to attend was based on optimizing ROI and benefiting its customers. Re-weighting marketing investment from indirect to direct activity should not be assumed to be a consequence of the settlement, Intel pointed out.

In fact, the company stated that the settlement between Intel and AMD required no significant changes in Intel's business practices, which Intel asserts have and will continue to be fair, lawful and pro-competitive. While Intel would not comment on any specifics of its MDF program, it did point out that the agreement with AMD states that the Intel Inside program is "conclusively presumed permissible" and that Intel may continue to offer discounts in order to win business.

What is not allowed under the terms of the agreement is conditional rebates or discounts, which are based on a customer's agreement not to use AMD products. However, Intel stated the company never engaged in this practice anyway. Therefore, the settlement in no way affects its decisions regarding pricing and discounting...

Source

Hmm, hard to say and who knows... Intel would never admit it anyway.
 

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Originally Posted by deletethegame View Post
very interesting, its sad AMD would need this to get a step ahead.
Your knowledge of the business world is lacking.
 

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Originally Posted by deletethegame View Post
very interesting, its sad AMD would need this to get a step ahead.
Please educate yourself regarding the currrent anti-trust suits before you comment again on this issue. Thanks.
 

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Intel is forced to play 100% fair do to their agreement. It doesn't surprise me at all that intel is rearranging their customer incentives. If they pull anything like they did in 2005 AMD would have them for contract infringement and for anticompetitive practices. Intel wouldn't admit it of course, nor will they admit that they did anything wrong ever.
 

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"In fact, the company stated that the settlement between Intel and AMD required no significant changes in Intel's business practices, which Intel asserts have and will continue to be fair, lawful and pro-competitive"

Say what ??

I'm sig'ing this
 
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