September 7th, 2010
Potential failure of Intel rules
Potential failure of Intel rules
Recently, the U.S. Federal Trade Commission (FTC) and Intel reached a preliminary settlement replacement for HP Pavilion DV9000 laptop Battery agreement, Intel made a piece of heart disease associated with gradually dissipated.
As part of the settlement, Intel agreed not to buy PC makers, barring them from using the competitor’s processors. For PC makers to use competitors processors, Intel not be allowed to retaliate. Intel did not mention that to say, to its original “carrot and stick policy” exposed the practice.
Although in recent years, wave after wave of anti-monopoly investigation, the Intel appears to have nothing to fear. However, over the past 10 years, Intel PC manufacturers through threats and inducements, to strengthen the means of time-tested advantages of market domination.
In today’s market environment, including Apple Computer, including computer makers more choice and AMD co-operation, while rival Intel’s new mobile Internet terminal ARM market leader, Intel is facing the Passing of embarrassing situations.
According to foreign news, FTC and Intel has yet to reach a final result of the settlement agreement, also need more time to discuss the details of the antitrust settlement.
Intel senior vice president and general counsel paragraph Matilda (Douglas Melamed), said: “Settlement Agreement provides a framework for us to continue to compete to provide consumers with the best price the best product. Reconciliation let us no longer with great expense and effort to respond to FTC proceedings. “
Because of this litigation, AMD will become profitable more take it lightly, AMD China Times Weekly to reporters that after the settlement with Intel, AMD will continue to Intel’s attention by giving or refusing to grant discounts to exclude competitors from entering the market approach . This, FTC on Intel made the abuse of prohibited acts, and to ensure continuous monitoring of their behavior.
On December 16 last year, Intel rival AMD and graphics card manufacturers the urging of the British Hill & Knowlton, FTC sued Intel, alleging abuse of its market in the past decade rule advantage exclude competitors in order to expand the monopoly.
At that time, FTC pointed out that Intel’s use of threats and inducements, and other means to force Dell, HP and IBM and other major PC manufacturers do not purchase rival chip. In addition, the company also introduced an exclusive agreement or exclusive agreements, to prevent PC makers promote the installation of a non-Intel chip products.
Subsequently, Intel said in a statement, FTC’s allegations false, and the new regulatory rules will be detrimental to technology innovation, and ultimately, consumers will suffer.
FTC and antitrust in this tug of war between Intel officially began. Meanwhile, Intel has denied HP pavilion dv9000 battery the allegations and insisted that only PC maker to offer some discounts.
Ironically, the computer maker Dell has been the United States Securities and Exchange Commission (SEC) 1 billion dollars in penalties, but the information disclosed by SEC showed that in fiscal 2008 over the previous quarter, Dell will come from Intel in connection ” kickbacks “included in the Corporation’s operating profit, earnings whitewash defrauded investors.
SEC said that Intel paid huge kickbacks in exchange for Dell Dell does not use its rival AMD processors, but Dell’s operating profit included in these rebates.
Data, along with Intel to Dell that the extra funding increases, the amount of its total corporate profits growing, fiscal 2003, Dell’s operating profit accounted for an additional payment of 10% compared to 38% in fiscal 2006, while 2007 the first quarter of fiscal year even as high as 76%.
In recent years, the United States, Japan and the European Union and other countries and regions around the Intel’s anti-monopoly litigation wave upon wave. Faced with these lawsuits, Intel appears to have nothing to fear. Intel has been hailed for an example, in 1969, the famous IBM antitrust suit, spent countless resources, as long as 13 years, eventually ended FTC withdrawal. Intel is also preparing to become the anti-trust lawsuit in a time-consuming the resources of a very long war.
“Antitrust and patent litigation can be said of America’s most high-end litigation.” Silicon Valley Agility IP Law Law Firm senior lawyer told the Die Zeit reporter Cheung, antitrust investigations are highly technical, highly complex and resource-intensive, usually continued for several years.
He believes that antitrust litigation related to the fate of a business, so companies usually have done everything in this lawsuit on Intel, Intel made a series of compromises, it is both sides are willing to see the results, because If the trial, the final outcome unpredictable.
Intel manufacturers exposed the unspoken rules
Intel’s troubles in the United States and Europe have not yet resolved, in the Chinese market Apple A1185 Battery has suffered a shelling of the domestic computer manufacturers. Prior to that, because they can not stand to be downgraded to seven-up computer company, Intel vice president, director of Chun Biao, Mao’s great down grievances to the media initiative.
Early in July this year, due to a laptop with AMD’s cooperation, HEDY conflict with the Intel upgrade. HEDY Intel also lowered Channel OEM customers.
Jun Biao, Mao’s China, according to media reports, Intel is divided into three main partners. The first level is the MNC, tier PC makers HP, Dell, Lenovo and other companies belonging to this level, this one a lot of direct customer collaboration with Intel headquarters, getting goods price and a higher rebate, the more high-end chip, the more preferential rate Great.
The second level, Local OEM, such as local Shenzhou, Founder, the same side, seven-up and other domestic manufacturers fall into this category. The general level of cooperation with Intel Greater China. Intel’s support for its less than MNC, but better than Channel OEM customers. The third grade Channel OEM, mainly for some regional brands.
According to Jun Biao, Mao said, because with the price and rebate and other benefits, therefore, downgraded Intel to customers, sometimes it becomes a punishment, while the cooperation model adjustment, seven-up will not enjoy direct procurement from the preferential policies Intel , are not entitled to special teams the past, Intel’s technical support.
Indeed, Intel also control downstream use of the competitor AMD processors.
Intel does not control the industrial chain of these all means, Mao Chun Biao also to the media that, due to monopoly in the market in absolute position, Intel has the absolute CPU pricing, the cost is 20 U.S. dollars the original product, but must sell 60 Intel U.S. dollar prices, when the factory to 60 U.S. dollars for the goods to the Intel, the Intel and then come up with 20 U.S. dollars, according to Local OEM customer loyalty different “reward.”
In addition, the industry’s more “famous” and “Market Fund refund” policy, according to this policy, manufacturers use Intel chips, and PC machines labeled “INTELINSI-DE” and to help its marketing will be appropriate for Intel reimbursement or refund of advertising support.
PC makers, according to a weekly insider’s disclosure to the Times, more fierce momentum a few years ago, when AMD, Intel refund can sometimes reach 50%.
Shenzhou Yujun Nong, vice president of computer products to the Weekly Times, told Sony VGP-BPS8B Battery reporters that the current Shenzhou still have some cooperation with AMD, but only in the desktop area, while the notebook computer has no use AMD chips. But the recent revelations of domestic computer makers Intel unspoken rules is concerned, he said that comment is not convenient.
August 9, Die Zeit reporter called Mao Chun Biao, Mao Chun Biao refused an interview, then send text messages to reporters, said he “did not want to comment on the matter.”
Month, 180-degree change in attitude occurred. Speculation, seven-up in cooperation with AMD, after intense pressure by Intel, helpless, HEDY had a risky move, through the media to put pressure on Intel.
Although these rumors have not been confirmed, but Intel’s strong earnings report last quarter and the living conditions of the domestic PC makers have emerged in sharp contrast.
Filing shows Intel’s second quarter revenue of 10.8 billion U.S. dollars, operating profit of 4 billion U.S. dollars, gross profit margin was 67%, while the tier PC makers such as HP, Dell, Lenovo’s gross profit margin is only about 10%, seven-up, Founder, with side margins of these companies hovering only 6%.
More anonymity, told Die Zeit the industry’s second-tier PC makers computer business did not make any money, a lot of business profits from other businesses.
August 9, at the Guangzhou University City meeting, the Times reporter interviewed weekly Ge Jun Intel executive director. Previously exposed to the domestic computer companies Intel “hidden rules”, a run on rival AMD is concerned, he said the interview is not convenient.
Price decided to market choice
Intel and AMD for many years in the competition, despite all the Intel on the industry HP pavilion dv6000 Battery chain to control, but ultimately, or “market talk”, such as PC industry analyst with Sun Yongjie said, “In today’s PC have been homogenized, the price To some extent, determine the market and user choice. “
By the end of July, HEDY Computer and AMD held a very high-profile ceremony for strategic cooperation.
A few days later on August 6, Sony (China) also work with AMD released the first notebook based on AMD next-generation platform for the EE series of mainstream laptops. It is understood that, in addition to seven-up, Sony, the recent period, there will be more AMD processor notebook market, a series of low-end market, including Lenovo, HP and other domestic and foreign firms.
A few years ago, AMD has a number of PC manufacturers at home and abroad have started cooperation on the desktop, but is still biased high-end notebook products, Intel notebook chips are still firmly grasping the market.
However, changes in the market has not up to Intel foolishly sentimental, and the increasing trend in low-end notebook market, computer makers have also strike it fierce price war, consumers want more choice, better value for money.
The face of many notebook manufacturers are choosing the fact that AMD products, AMD is also the Vice President Xiaoming Pan attributed to “market choice.” In cooperation with HEDY ceremony, PAN Xiao-ming said: “The cooperation is a matter of course, can provide consumers a wide range of options to achieve better user experience, lead to more affordable products.”
At present, the competition between Intel and AMD, Intel face of pressure. On the one hand, AMD desktop chip market from the encroachment to start Sharu field notebook platform, and more and more enterprises begin to cooperate with AMD; the other hand, in the past because of Intel because computer makers, in cooperation with AMD also appears to have relatively low-key, but now more and more high profile.
In addition to AMD, Intel has a bigger problem is that the British company ARM.
“Intel is facing a greater impact from the ARM camp.” BDA analyst Tommy that, Intel no longer willing to a delay, and to avoid monopoly charges and thus the enormous human and financial resources consumption, can concentrate Ling Dynamic chip energy solution, “power” problem, thus taking the smart chip market to grasp the future trend of mobile Internet.
The impact from the ARM camp is so great, even Tirano Information Network president, said Intel should buy ARM, and put forward two major reasons: ARM not only dominated the smartphone market, but also in the Internet this and intelligence of the market growing threat to Intel. “Intel will be no choice but to buy ARM.”
Earlier this year, Lenovo announced Lenovo’s mobile Internet strategy, in its first generation of mobile Internet end-products – smart the Skylight, smart phone music phone, we all use ARM architecture based on Qualcomm chips.
In this new battle for mobile Internet, Intel are strong partners began to change, and the ARM license agreement signed by more and more companies, including Alcatel, Atmel, Broadcom, Freescale, LG, Qualcomm , Samsung, Sharp, and TSMC so.
ARM, senior vice president lan Drew told the Weekly Times, told reporters: “HP Pavilion DV2000 Battery ARM can not be replaced in the PC market, Intel, but Intel could not squeeze out the smart world ARM.”
According to Intel Executive Vice President Sean Maloney said, “breakthrough” is Intel’s current focus, while the breakthrough made in the area between the laptop and cell phone “gap” zone, in this emerging field, Intel would like to occupy more market share, have more say, but the camp from the mobile phone chip based on ARM architecture, Intel already has become the biggest threat.
The moment, Intel can be attacked front and rear, a traditional rival AMD Sharu notebook computer market, the emerging rival ARM in the mobile Internet market leader in end-products, Intel will be how to deal with?
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