NVIDIA Accuses Intel of Anti-Competitive Pricing for Atom Processor

[btarunr]

Intel was recently awarded a fine of over a billion Euros by the EU for anti-competitive malpractices in the EU. Speaking at Reuters Technology Summit, NVIDIA CEO Jen-Hsun Huang accused Intel of anti-competitive pricing for the Intel Atom processor, although made it clear that NVIDIA won't be pressing charges any time soon.

According to NVIDIA, Intel sells an Atom processor typically for US $45 a piece, while in a bundle with Intel's own chipset consisting of an i945-class northbridge and ICH7-class southbridge for just $25, that's $25 for the processor and Intel chipset. This is driving away motherboard manufacturers from opting for Intel Atom paired with NVIDIA's single-package Ion chipset, which NVIDIA claims, (and reviews have shown,) to offer superior performance and features at almost half the board footprint. "That seems pretty unfair," Huang said. "We ought to be able to compete and serve that market."

Intel was quick to dismiss Huang's accusation. "We compete fairly. We do not force bundles on any computer makers and customers can purchase Atom individually or as part of the bundle," said Bill Calder, a spokesperson for Intel. "If you want to purchase the chip set, obviously there is better pricing." NVIDIA made it clear it doesn't have any immediate plans to lock onto Intel in (yet) another anti-competition case. "I hope it doesn't come down to that," Huang said. "We have to do whatever we have to do when the time comes. We really hope this company [Intel] will compete on a fair basis," he added.

View at TechPowerUp Main Site

 

[Roph]

So what's to stop them just buying the bundle? And then just only using the CPU while putting the chipset in its rightful place: in a dumpster?

 

[btarunr]

So what's to stop them just buying the bundle? And then just only using the CPU while putting the chipset in its rightful place: in a dumpster?

If ASUS wants to make an Atom motherboard, all it has to pay Intel is $25, in return for processor and chipset (higher margins). Now if it wants NVIDIA Ion, it will either have to pay $25 (for Intel processor + chipset) and an additional amount for NVIDIA's Ion chipset, or take the more expensive route of $45 + Ion's price. In each case, Intel is making Ion seem a bad expenditure.

 

[Flyordie]

Cmon Cuomo get the damn grand jury together and indict Intel on being a Monopoly and Trade Law violations... we gotta hit em at the same time to make it hurt!
AMD, no matter how low your stock goes I will never sell out.

 

[A Cheese Danish]

Intel, what will they be accused of next?

 

[Flyordie]

What do you mean accused? They have been found guilty in 4 countries of the same crap over and over... They are no longer innocent.
--
edit-
Im not meaning to sound mean, and I am not being rude in my tone or anything like that... I just don't buy from a company as dishonest as this. AMD's management honestly thought that since the K8 architecture was A-LOT better than what Intel had that they wouldn't need to bribe anyone or make illegal rebate stipulations. Now we know why AMD's marketshare remained below 25% throughout that product dominance.

People may call me an AMD fanboy... how about this... I promote the company that treats its customers with respect and actually tries to look after its customers.
The people that consider me a fanboy are people that don't give a shit about others and consider lie'n to get ahead a good habit. (sure, a little white lie every now and then never hurts anyone) A 6 year lie and THEN having the audacity to STEAL a patent and think you could get away with it...
/end rant

 

[denice25]

that's pretty bad news..

 

[tkpenalty]

Definately anti competetive when:

1. Nvidia lacks a x86 liscense
2. Means less market exposure of the Ion

I want more Ion systems dammit. This is hurting us the consumer.

 

[leonard_222003]

Nvidia bitching about Intel again.What about the times when they make some false claims about how good are their video cards in some bullshit charts , or times when they cover up some bad GPU's until it's not possible anymore and they replace it with insurance law suits , of cousre .
It seems to me they can't agree with anyone , unlles they make a profit from it and then all is good , we can't make profit then we fight dirty.

 

[breakfromyou]

rofl@intel. I actually think the extra $ is worth it, considering how much better the chipset is.

Now as for AMD. They don't depend mostly on marketing. They come out with a chip and hope for the best

 

[eidairaman1]

intel is limiting their sales by not allowing their CPUs to be on other Chipsets, First it was QPI now its this.

 

[h3llb3nd4]

Oh there they go again:shadedshu

 

[Deleted member 24505]

Oh boo hoo naughty old intel.If you cant take the heat,get out of the kitchen.

 

[lemonadesoda]

NOW I know why there are SO MANY sh1tty Atom boards with the power hungry chipset. Basically, Intel is dumping that cr4ppy hot, power hungry, underperforming chipset through effective rebates.

The Atom CPU is $45, and the cr4ppy chipset is -$20 ($20 rebate)! I guess they have stock piles on stock piles of that chipset that no-one wants for a desktop mainboard... and they hope to palm it off on the economy Atom... This is clearly a case of chipdumping, just like the Asian's were accused of memory dumping and fined for that.

Intel will get into trouble again for that.

 

[Error 404]

We can only hope that the Ion platform becomes popular; I'm getting a Netbook for xmas, I want an Atom+Ion+Windows 7 combination! That would be almost perfect.
Intel needs to stop its cr@p and get with the program; users want good products. :shadedshu

 

[largon]

Oh look at that, Intel abusing the market.
Oh well, nothing new under the sun.

 

[DaveK]

Go Intel woo! The competition are just sore losers lol

 

[Yukikaze]

In other words: nVidia wants to dictate how Intel should sell its products.

If Intel only sells the Atom with their chipset, it is their choice, not that of nVidia, or anyone else for that matter.

 

[Scheich]

Appearingly the fine missed a couple of zeros. I wonder how the Brussel guys will spend all their Intel-love.

 

[HTC]

In other words: nVidia wants to dictate how Intel should sell its products.

If Intel only sells the Atom with their chipset, it is their choice, not that of nVidia, or anyone else for that matter.

Unless i miss understood, that's not the problem.

The problem is that Intel is charging $45 for the CPU, but charges only $25 if it includes the chipset as well.

Why would manufacturers buy the CPU + non-Intel chipset if they can get the Intel's chipset AND CPU for nearly half the price (or less)?

Why doesn't Intel make a price for the chipsets only? Are they afraid they won't sell?

EDIT

Appearingly the fine missed a couple of zeros. I wonder how the Brussel guys will spend all their Intel-love.

Read here: last paragraph.

 

[Yukikaze]

Unless i miss understood, that's not the problem.

The problem is that Intel is charging $45 for the CPU, but charges only $25 if it includes the chipset as well.

Why would manufacturers buy the CPU + non-Intel chipset if they can get the Intel's chipset AND CPU for nearly half the price (or less)?

Why doesn't Intel make a price for the chipsets only? Are they afraid they won't sell?

And still. It is a decision for the IP/Tech holder to make, and nobody else.

 

[[I.R.A]_FBi]

Cmon Cuomo get the damn grand jury together and indict Intel on being a Monopoly and Trade Law violations... we gotta hit em at the same time to make it hurt!
AMD, no matter how low your stock goes I will never sell out.

This is business, not kindergarten, businesses exist soley to make profit, not to make you feel good about yourself.

 

[yogurt_21]

lol is this anti-competitive? sure. breaking any laws? certainly not. this is diffferent from the amd situation as intel is not offering the discount on the provision that the buyers not sell nvidia parts.

you can't fine a company for wanting to offload a product for free. (or for giving a discount for a bundle) to me this says that intel is about to come out with something better and needs to get rid of the crappy stuff first that they have stockpiled.

I mean this is no different than disney offering a 5 day park hopper for the price of a 3 day. (or sometimes it's even cheaper than a 3-day if you watch for the deal). thats a discount for staying 2 more days. I'd imagine many companies will employ similar tactics during these hard economic times. see intel like disney knows that one product is already popular and will sell well on it's own (3 day hopper is the #1 bought for the disneyland/california adventure parks) so they offer discounts to puch a weaker product (5-day hopper) and increase it's sales to get more cutomer loyalty and a higher chance at return business.

it's called surviving tough economy 101.

 

[allen337]

Unless i miss understood, that's not the problem.

The problem is that Intel is charging $45 for the CPU, but charges only $25 if it includes the chipset as well.

Why would manufacturers buy the CPU + non-Intel chipset if they can get the Intel's chipset AND CPU for nearly half the price (or less)?

Why doesn't Intel make a price for the chipsets only? Are they afraid they won't sell?

EDIT



Read here: last paragraph.

Why would you care if intel gave it away, its theirs. Just because nvidia cant compete sounds like the crybaby they have always been. If nvidia had any common sense they would STFU along with AMD. Intel is one company that can make it hurt for them for a long time. And have the money for the fines that makes them hurt. GO INTEL!!!!!!!

 

[iStink]

Nvidia should get in good with intel so they can be part of that bundle.

Plus, if AMD comes out with something competitive (being that they own ati) intel will be forced to look to nvidia to compete. The potential irony is thick with this story.

Cmon Cuomo get the damn grand jury together and indict Intel on being a Monopoly and Trade Law violations... we gotta hit em at the same time to make it hurt!
AMD, no matter how low your stock goes I will never sell out.

"We gotta hit em" Who's we? Are you a stock holder of nvidia or amd? Why do you care so much? If you had a brain in your head, you'd realize that Intel is good for consumers since their competitive nature drives pricing down on anything they are competing with.

Seriously people, can we stop the mindless fanboy bs? It's one thing to prefer a company's product over another, it's another to throw logic and thought out the window all for the sake of looking like a loyalist.

I know I'm breaking Godwin's law here, but wasn't one of the reasons the Nazi's hated the Jews is because they did so well in business and commerce in a time when the country was hurting financially? Do you see the parallelism between the Nazi's and AMD fanboys?

Unless i miss understood, that's not the problem.

The problem is that Intel is charging $45 for the CPU, but charges only $25 if it includes the chipset as well.

Why would manufacturers buy the CPU + non-Intel chipset if they can get the Intel's chipset AND CPU for nearly half the price (or less)?

Why doesn't Intel make a price for the chipsets only? Are they afraid they won't sell?

EDIT



Read here: last paragraph.

Why does it cost more for a 10 count McNugget than it does for three 4 count dollar menu mcnuggets? It's all an incentive to move product.