PRESENTED BY:TOQEER NASEER

Intel’s “Rebates” And Other Way Its “Helped” Customer

Intel’s “Rebates” And Other Way Its “Helped” Customer

On nov 12 Intel corp. gave to AMD (Advance Micro Device) $1.25 billion to settle lawsuit.

AMD’s lawsuit Intel using his monopoly power unfairly.

70% market of the Intel world largest manufacturer micro processer.

20% market of the AMD 2nd largest market.

It is the difficult to other companies to get market share.

Because of Intel & AMD hold patents.

On one have huge investment in billions.

Both have more experience corp.

Micro processer cost will be high new company cant afford it.

Intel’s “Rebates” And Other Way Its “Helped” Customer

AMD was not only who accused Intel to use monopoly power unfairly.

May 2009 European commission said Intel unfairly block AMD.

November 2009 new York's attorney general sued on Intel.

June 2008 japans fair trade commission intel violate the antitrust law.

Intel’s “Rebates” And Other Way Its “Helped” Customer

FTC said Intel paid to companies buy Intel micro processer.

Late 1990s Intel invest hundred of million.

To developing new type of micro processer would not use “x86 technology”.

All device have must some instructions that run the program like word processing, games etc.

Intel’s “Rebates” And Other Way Its “Helped” Customer

But there is some blunder in New “X86 technology”.

It couldn’t run old “x86” data on new technology of “X86”.

AMD take advantage for Intel this mistake.

They make same technology and avoided that blunder.

So it was more faster & powerful then Intel & take over the market.

Intel’s “Rebates” And Other Way Its “Helped” Customer

Intel gave name to is processer “Itanium”.

It was more faster and powerful for old technology but with mistake.

All software deign for old & current technology.

That not work on new “Itanium” unless first run “emulation” program.

But it slow down the programs.

Intel’s “Rebates” And Other Way Its “Helped” Customer

AMD also develop New processer During 1990s

AMD decide in its new processer “X86” use for all old soft wear without “emulation”.

AMD called new processer “Athlon”.

That work in new “X86” faster and better then “Itanium” also less price & consume less power.

Intel’s “Rebates” And Other Way Its “Helped” Customer

When both market their new processer in 1999.

Computer manufactures check out & understand that AMD better then Intel.

They Buy AMD new technology Processer.

AMD market share grew up from 9% to 25%.

Intel market share fall 90% to 74%.

Intel’s “Rebates” And Other Way Its “Helped” Customer

After the 2003 manufactures refused to buy AMD processer.

In 2002 Sony use AMD 23%NEC 84%.Toshiba 15%

In 2004 AMD share fall down in japans processer market form 25% to 9%

Intel’s “Rebates” And Other Way Its “Helped” Customer

TOM McCoy vice president claim that Intel use his monopoly unfairly.

McCoy claim that Intel paid to NEC,SONY,TOSHIBA million dollar in “Rebates”.

But McCoy claim that Its not really “Rebates”.

Rebates is payment based on the number of product customer buy and give discount but after the customer buy products.

Intel’s “Rebates” And Other Way Its “Helped” Customer

Intel handover these payment to companies when they stopped to buy AMD processer.

Intel also give the threat to companies we will stop all kind of processer supply.

AMD couldn’t provide all kind of Processer.

Intel’s “Rebates” And Other Way Its “Helped” Customer

AMD convinced foreign goverments to investigate this case including.

European union.South Korea.Japans

In 2009 US FTC (Fair Trade Commission) said that Intel use Unfairly monopoly power.

Intel’s “Rebates” And Other Way Its “Helped” Customer

FTC investigate and found that some programs run slow down in AMD Processer.

Intel changed programs and sold to companies without tolled to AMD.

FTC said that in 2003 Intel change the compiler so which compile the Intel processer.

So programs smoothly work in Intel but don’t work with AMD.

Intel’s “Rebates” And Other Way Its “Helped” Customer

So customer don't have idea about it.

They blame to the AMD.

Don’t willing to buy Computer with AMD processer.

FTC also Claim that Intel Made software “libraries”.

In this they change the codes so software don’t work smoothly in AMD

Intel’s “Rebates” And Other Way Its “Helped” Customer

FTC also said that Intel Paid to companies to Boycott to the AMD processer.

Dell inc is the good example of “Rebates”

Dell stopped in 2001 use AMD processer.

Dell not use AMD processer in Any computer

Intel give threat to dell if dell join AMD we will give ZERO payment.

Intel’s “Rebates” And Other Way Its “Helped” Customer

Dell complain that refusal of AMD processer was hurting its sales.

Intel give in 2004 $300 million.

Dell continued lose market share.

Dell CEO said to Intel Dell is losing High Margin business because of AMD.

Intel’s “Rebates” And Other Way Its “Helped” Customer

In 2006 dell broke the agreement to Intel not using the AMD based computer

That year they introduce Alien ware high gaming computer based on AMD processer.

Dell decide to introduce to new line of computer based on AMD processer.

Intel’s “Rebates” And Other Way Its “Helped” Customer

When Intel knew about the agreement between Dell & AMD.

They reduce the discount & Rebate.

That effect on Dell net income it fall down billions in 2006 & 2007.

Intel also forcing to another companies Like: Hp, Sony, IBM to refuse AMD processer

But they refused completely boycotted of AMD

Intel’s “Rebates” And Other Way Its “Helped” Customer

Hp used 5% AMD in his computer.

IBM only use AMD Processer its high performance.

Aug 2010 FTC lawsuit announced that Intel cant take advantage of his Monopoly.

Also cant use his compliers & his personal libraries of software code.

Some people said that those restriction cant take the leading place for Intel.

Intel’s “Rebates” And Other Way Its “Helped” Customer

2006 AMD market share was 48%

Intel market share fallen 51%.

In 2011 Intel Share was 71%

AMD was 25%.

Intel’s “Rebates” And Other Way Its “Helped” Customer