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Guru3D.com » News » Intel reportedly reserved $ 3 billion in 2019 to competitively block AMD

Intel reportedly reserved $ 3 billion in 2019 to competitively block AMD

by Hilbert Hagedoorn on: 10/14/2019 09:53 AM | source: Adored TV | 149 comment(s)
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.

 



Intel reportedly reserved $ 3 billion in 2019 to competitively block AMD




« Rumor: Zen 3 sees yet another IPC Significant gain · Intel reportedly reserved $ 3 billion in 2019 to competitively block AMD · Intel server platform going for Socket LGA4677 with PCIe 5.0 and DDR5 memory »

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cryohellinc
Senior Member



Posts: 3507
Joined: 2014-10-20

#5720236 Posted on: 10/14/2019 10:00 AM
Never happened before, and there it is again!

Petr V
Senior Member



Posts: 357
Joined: 2018-08-04

#5720245 Posted on: 10/14/2019 10:33 AM
Waste of money.

Dimitrios1983
Senior Member



Posts: 330
Joined: 2018-03-01

#5720247 Posted on: 10/14/2019 10:45 AM
Yup I made a comment on here while back or at tech spot, gotta love their shady business ethics.

asturur
Senior Member



Posts: 1220
Joined: 2010-05-12

#5720251 Posted on: 10/14/2019 11:01 AM
Well, while this is all to be confirmed, in case is abuse of dominant position can be punished.

What would make me really sad is that 3 billion spent on research would pay more to everyone.

Neo Cyrus
Senior Member



Posts: 10106
Joined: 2006-02-14

#5720252 Posted on: 10/14/2019 11:09 AM
Called it. I knew they'd do this shady BS again. They haven't even paid up for the last time yet, have they? And that was such a tiny fine relative to the near-apocalypse they caused in the CPU market.

Just think about it, where would we be now if AMD had lost just a little more and went under? $500 locked quad core chips that are lower in IPC than what we have now... with toothpaste between the die and heatspreader.

Edit: Wrote HSF instead of heatspreader.

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