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Intel reportedly reserved $ 3 billion in 2019 to competitively block AMD
Intel has been reserving 3 billion dollars aside to offer 'discounts' to its customers, and there actually is a photo to back that claim. The recent official unveiling of Cascade Lake X might already the result of that program as the CPUs are selling twice as low per core compared to the chips from Intel's previous generation.
It is Youtube channel Adored TV that explains in a video a slide what exactly Intel would be doing in order to be a stronger party than AMD, and that is injecting money to create discounts that make sure their customers buy intel processors.
It is quite an accusation based on one slide to be honest. If correct, Intel just in 2019 spend three billion US dollars in that program. The money would be used for example for price reductions. Intel names this 3B program the "2019 meet comp discount," Intel's net profit in 2018 was just over USD 21 billion alone. Next to the price reduction on the recent procs, you also need to think bigger. Such money is probably being spent lowering Xeon contract prices to large customers, which has been rumored for some time
The intended effect if the 3B reservation would include price reductions that would make AMD less profitable. According to the slide, Intel in 2019 is to provide ten times as much money for the competition - The slide is labeled " Intel's Scale Advantage ... Financial Horsepower". Even if the accusation was not made directly, if true it is Intel's using its monopoly against the competition.
A disclaimer, the authenticity of the slide cannot be guaranteed. There is currently no evidence of illegal activities nor is it certain that the slides of Adored TV are genuine, or even from Intel at all.
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Cyberdyne
Senior Member
Posts: 3580
Joined: 2010-01-16
Senior Member
Posts: 3580
Joined: 2010-01-16
#5720362 Posted on: 10/14/2019 05:06 PM
If the OEM exclusive rumor is true, that still doesn't mean anything. It's no different than the epic store paying for exclusivity. Companies make these contracts all the time. If HP only used Corsair ram under contract, would that upset you?
If the OEM exclusive rumor is true, that still doesn't mean anything. It's no different than the epic store paying for exclusivity. Companies make these contracts all the time. If HP only used Corsair ram under contract, would that upset you?
kings
Senior Member
Posts: 158
Joined: 2018-09-18
Senior Member
Posts: 158
Joined: 2018-09-18
#5720364 Posted on: 10/14/2019 05:10 PM
But is your business about re-selling those goods to other consumers or are u using them yourself? Offering upfront discounts is good, offering some extra products upfront is good too, paying cash "back" after u meet some condition is shady as hell and when a big corpo with a criminal record does it..... u can't really hope for the best.
The smell with this cashback programs is u can't really prove that, under the table, the real condition to get them is not selling competing brands.
Ofc we don't yet know the truth behind it but I rather overreact now than let history repeat itself....
Cashbacks are discounts, just not directly!
Some brands end up not offering direct discounts as to not devalue their brand in the market and so, cashbacks are a way to discount the products.
For example, Asus currently has a cashback campaign in place (I don't know if in all countries, but in mine yes), if we buy a Ryzen CPU + board.
Of course I don't get my hands on fire for anyone, but I doubt Intel is so stupid as to even make slides showing everyone that it's doing illegal things.
But is your business about re-selling those goods to other consumers or are u using them yourself? Offering upfront discounts is good, offering some extra products upfront is good too, paying cash "back" after u meet some condition is shady as hell and when a big corpo with a criminal record does it..... u can't really hope for the best.
The smell with this cashback programs is u can't really prove that, under the table, the real condition to get them is not selling competing brands.
Ofc we don't yet know the truth behind it but I rather overreact now than let history repeat itself....
Cashbacks are discounts, just not directly!
Some brands end up not offering direct discounts as to not devalue their brand in the market and so, cashbacks are a way to discount the products.
For example, Asus currently has a cashback campaign in place (I don't know if in all countries, but in mine yes), if we buy a Ryzen CPU + board.
Of course I don't get my hands on fire for anyone, but I doubt Intel is so stupid as to even make slides showing everyone that it's doing illegal things.
D3M1G0D
Senior Member
Posts: 2068
Joined: 2017-03-10
Senior Member
Posts: 2068
Joined: 2017-03-10
#5720366 Posted on: 10/14/2019 05:18 PM
I really don't see an issue here. This seems to be little more than clickbait, which isn't too surprising considering the source - AdoredTV should always be taken with a truckload of salt.
FYI, AMD was the one who developed adaptive sync, which they then handed over to VESA to be used as an open standard (both authors of the white paper were from AMD). They then created FreeSync to implement that technology on their side.
I really don't see an issue here. This seems to be little more than clickbait, which isn't too surprising considering the source - AdoredTV should always be taken with a truckload of salt.
Nvidia "made" Gsync first but AMD responded by supporting the open standard Adaptive sync VESA had available for a while.
FYI, AMD was the one who developed adaptive sync, which they then handed over to VESA to be used as an open standard (both authors of the white paper were from AMD). They then created FreeSync to implement that technology on their side.
fantaskarsef
Senior Member
Posts: 14163
Joined: 2014-07-21
Senior Member
Posts: 14163
Joined: 2014-07-21
#5720372 Posted on: 10/14/2019 05:31 PM
So... what's the surprise here? Correct, none.
And tbh I'm not sure this, even if true, is shady by the sense of the word. It's just business tactics.
So... what's the surprise here? Correct, none.
And tbh I'm not sure this, even if true, is shady by the sense of the word. It's just business tactics.
Click here to post a comment for this news story on the message forum.
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Joined: 2011-09-21
Correct me if I'm wrong but didn't Nvidia release G-Sync before Free/Adaptive sync were made? If anything, Freesync was the copy.
Nvidia "made" Gsync first but AMD responded by supporting the open standard Adaptive sync VESA had available for a while.