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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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Intel announced that it has contributed the Thunderbolt protocol specification to the USB Promoter Group. This will enable other chip makers to build Thunderbolt compatible silicon, royalty free. It w...
Cyberdyne
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Senior Member
Posts: 3580
Joined: 2010-01-16
#5720422 Posted on: 10/14/2019 07:40 PM
Witch hunt is a figure of speech, you don't seriously expect me to clarify that this is not as bad as witch hunts from ancient history, do you?
Get real.
It's what he's known for. He's reported rumor as truth before, in real journalism he would have never been able to find a job.
It's so sad that in todays age we put "witch hunt" on anything and everything as though whatever it is they claiming is a "witch hunt" is actually as bad as the actual witch hunts......pretty pathetic actually.
Witch hunt is a figure of speech, you don't seriously expect me to clarify that this is not as bad as witch hunts from ancient history, do you?
Get real.
It's what he's known for. He's reported rumor as truth before, in real journalism he would have never been able to find a job.
Deleted member 213629
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#5720428 Posted on: 10/14/2019 08:14 PM
Bit of a stretch there don't you think?
It's so sad that in todays age we put "witch hunt" on anything and everything as though whatever it is they claiming is a "witch hunt" is actually as bad as the actual witch hunts......pretty pathetic actually.
Bit of a stretch there don't you think?
MonstroMart
Senior Member
Posts: 1316
Joined: 2006-07-06
Senior Member
Posts: 1316
Joined: 2006-07-06
#5720432 Posted on: 10/14/2019 08:16 PM
You have no problem with a company in a position of strength in an oligopolistic market paying for the manufacturers to not use a competing product. Man this is something.
This is different than Epic versus Steam. Both market are competitive ones. There's like 10 online stores selling games (GOG, Humble Bundle, Green Man Gaming, Uplay, Origin, EPIC, Bethesda, Rockstar Social Crap, Windows Nope, XBox store, PS4 store, Switch Store, etc etc etc etc). There's countless of offline stores selling games. Lot of the online ones are selling Steam keys but it's still a competitive market and Steam is just 1-2 mistakes away from being the next Intel Compatible or Sony Walkman. And there's like trillions of developer and publishers. I mean most of them are not highly popular but unless you're a brainwashed triple AAA only gamers there's a vast world outside of EA, Activicrap and Ubisoft. Still what Epic does is imo despicable even though their store would normally be a welcome addition to maintain a competitive market.
The desktop/laptop CPU and GPU markets are everything but competitive markets though. They are like the desktop/laptop OS market. In fact Intel should pray for AMD to remain alive and well cause without them they pretty much become a monopoly in the desktop cpu market and the government might very well see this as a security problem in the long term.
Intel is very welcome to reduce the price of their products to OEM and resellers and offer freebies to the end users. Very very welcome in fact. Paying to prevent OEM from building AMD computers nope nobody outside of fanboys ever wanted that. Let OEMs build AMD and Intel computers and let the end users decide which ones they want to buy.
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?
You have no problem with a company in a position of strength in an oligopolistic market paying for the manufacturers to not use a competing product. Man this is something.
This is different than Epic versus Steam. Both market are competitive ones. There's like 10 online stores selling games (GOG, Humble Bundle, Green Man Gaming, Uplay, Origin, EPIC, Bethesda, Rockstar Social Crap, Windows Nope, XBox store, PS4 store, Switch Store, etc etc etc etc). There's countless of offline stores selling games. Lot of the online ones are selling Steam keys but it's still a competitive market and Steam is just 1-2 mistakes away from being the next Intel Compatible or Sony Walkman. And there's like trillions of developer and publishers. I mean most of them are not highly popular but unless you're a brainwashed triple AAA only gamers there's a vast world outside of EA, Activicrap and Ubisoft. Still what Epic does is imo despicable even though their store would normally be a welcome addition to maintain a competitive market.
The desktop/laptop CPU and GPU markets are everything but competitive markets though. They are like the desktop/laptop OS market. In fact Intel should pray for AMD to remain alive and well cause without them they pretty much become a monopoly in the desktop cpu market and the government might very well see this as a security problem in the long term.
Intel is very welcome to reduce the price of their products to OEM and resellers and offer freebies to the end users. Very very welcome in fact. Paying to prevent OEM from building AMD computers nope nobody outside of fanboys ever wanted that. Let OEMs build AMD and Intel computers and let the end users decide which ones they want to buy.
Cyberdyne
Senior Member
Posts: 3580
Joined: 2010-01-16
Senior Member
Posts: 3580
Joined: 2010-01-16
#5720438 Posted on: 10/14/2019 08:40 PM
It doesn't become bad because there are only two cpu makers.
If AMD were to put extra heat on Intel by hypothetically signing a contract with Alienware to only use AMD CPUs then I also wouldn't care. And I doubt you would.
Also understand that it takes two to tango here, Intel wouldn't be forcing OEMs to take the deal. OEMs would accept it because it's a good deal. They can say no, and still build both kinds of computers.
This kind of competition is fine, using your money to reinvest makes sense. Having more money than the competition makes that easier, of course. And this behavior could lead to a monopoly, which is illegal. But it's important to understand that's the vicious cycle of any company.
Every company aspires to be the monopoly, every move they make ideally moves them closer to that. Which is perfectly legal. But the reward for actually meeting that goal is to be punished by the law.
Intel believes (rumor mind you) that taking this action will make them competitive. Which is true, Ryzen is a threat they can't ignore. If that leads them to be a monopoly, then they will be punished, it's happened before.
You can argue that it's immoral if you like. But that's a conversation I have no interest in.
It doesn't become bad because there are only two cpu makers.
If AMD were to put extra heat on Intel by hypothetically signing a contract with Alienware to only use AMD CPUs then I also wouldn't care. And I doubt you would.
Also understand that it takes two to tango here, Intel wouldn't be forcing OEMs to take the deal. OEMs would accept it because it's a good deal. They can say no, and still build both kinds of computers.
This kind of competition is fine, using your money to reinvest makes sense. Having more money than the competition makes that easier, of course. And this behavior could lead to a monopoly, which is illegal. But it's important to understand that's the vicious cycle of any company.
Every company aspires to be the monopoly, every move they make ideally moves them closer to that. Which is perfectly legal. But the reward for actually meeting that goal is to be punished by the law.
Intel believes (rumor mind you) that taking this action will make them competitive. Which is true, Ryzen is a threat they can't ignore. If that leads them to be a monopoly, then they will be punished, it's happened before.
You can argue that it's immoral if you like. But that's a conversation I have no interest in.
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It's so sad that in todays age we put "witch hunt" on anything and everything as though whatever it is they claiming is a "witch hunt" is actually as bad as the actual witch hunts......pretty pathetic actually.