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Sober IT truths from the island-state

by Michael Tan, Singapore

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Intel sells CPU for US$45, but CPU + two other chips for US$25-- OBVIOUSLY

May 22, 2009 19:11

According to Nvidia's boss, this is the pricing model for Intel's Atom CPU which is used in Netbooks:

Atom CPU only = US$45
Atom CPU + two other chips = US$25

And Nvidia's boss says that's unfair.

Now, Bill Cader says it's NOT unfair. His words:

"If you want to purchase the chip set, obviously there is better pricing."

HUHHHH??? You mean it's obvious to sell MORE stuff for less money?

Look, I fully believe and support the notion that Intel should price its stuff as it likes. I'm not a supporter of antitrust legislation; it's senseless and it's mad. One should be able to run one's business as one likes, within moral law.

But Intel's spokesman should have said: We made this Atom chip to dominate this Netbook market, buying us some time to catch up on graphics performance with Nvidia. We did not make this Atom chip so Nvidia could gain a foothold in the Netbook market, which is our future.

Of course, Intel can't really say it as it is, because that's going to be caught under anti-competitive legislation. So it wants to start befuddling us. Makes it just as bad as the legislators.

But once Intel's minions start to mutter crap like this, it's disgusting. It's trying to fuddle it up, treating us as fuddleheads.

Read this well-done article, the only one I found which was CLEAR about this.

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ShiningStar

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ShiningStar says...
You could always buy the extra 2 chips and throw them away.

Anyway I don't think there's nothing wrong with it's pricing. I think Nvidia is going end up going suffering, since they're technical dominant as Intel.

May 22, 2009 23:04

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ninjaboy

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ninjaboy says...
It's a war zone out there - that's business. Intel is laughing at this - and it's ugly - but hey that happens all the time. Fundamentally, I'd say the objective of most businesses is to dominate the market. There are so many examples out there.

May 23, 2009 09:40

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About Michael Tan

Michael Tan is lucky enough not to have to choose between his job and his passion. He is the responsible for all aspects of developing new businesses and sourcing new productlines for a regional IT distribution company. He also oversees the company's legal affairs as General Counsel. In real life, he is a technology enthusiast, from both the fun and business viewpoint. The only choices he has to make are whether to play with his astro telescopes, his PC games, his Wii console, hit the track, tweak his car, or refine his biofilters, post his blogs, research for a new digicam, scour every forum to feed his habit further, play with his son… You can reach Michael at michaeltanyk@gmail.com ALL BLOGPOSTS ONLY REFLECT MICHAEL'S OPINIONS AND NOBODY ELSES'.