Report: Nvidia chimes in, says Intel pricing unfair
Following the European Union's decision to fine Intel for "illegal" business practices, Nvidia is crying foul too, according to a report.
Nvidia CEO Jen-Hsun Huang said Intel's chip pricing is unfair but added that the graphics chipmaker will not seek antitrust action against Intel, according to a Reuter's report.
This is a beef that Nvidia has had with Intel ever since Nvidia's Ion graphics chipset debuted last year. The competitive backdrop is Intel's longstanding vision of a CPU-centric universe versus Nvidia's creed that graphics processing matters more and more in a multimedia-intensive world.
Inside every Acer, Asus, Hewlett-Packard, and Dell Netbook beats an Intel silicon core. Intel supplies both the central processing unit (CPU) and graphics processing unit (GPU)--the latter in the form of the Intel integrated Graphics Media Accelerator.
Nvidia wants in. It maintains that Intel-only Netbooks don't deliver the graphics horsepower that Nvidia graphics silicon can.
Huang said Intel sells an Atom chip by itself for $45, but sells a three-chip set for $25 to lure business away, according to Reuters. "That seems pretty unfair," he said to Reuters.
This accusation by Huang follows the European Commission's decision to fine Intel $1.45 billion for employing "illegal" tactics to compete against Advanced Micro Devices.
An Intel spokesman said that computer makers are free to purchase the Atom chip alone or bundled with other chips. "If you want to purchase the chip set, obviously there is better pricing," he told Reuters.
Brooke Crothers has been an editor at large at CNET News, an analyst at IDC Japan, and an editor at The Asian Wall Street Journal Weekly, among other endeavors, including co-manager of an after-school math-and-reading center. He writes for the CNET Blog Network and is not a current employee of CNET. Disclosure. 
It's not dumping; Intel is local. Anti-dumping laws are meant to maintain free and fair trade between nations.
And, this tactic resembles a loss leader that every retailer in the world does.
people who are looking for more powerful graphics engines can go with something more expensive like the nvidia chips, but for the average consumer who aren't looking for that Intel is indeed hitting the sweet spot. if nvidia wants to really get into the mainstream they need to drop their prices so regular consumers don't have to buy really expensive latops, in which case the consumer wins.
You're missing the point. Intel is selling at below cost in order to put Nvidia out of business. When that happens, there won't be an Nvidia to drop it's prices. Then Intel will raise it's prices to whatever the market will bare and the consumer will lose out.
...An Intel spokesman said that computer makers are free to purchase the Atom chip alone or bundled with other chips. "If you want to purchase the chip set, obviously there is better pricing," he told Reuters.
WOW Intel, I knew you guys were pretty sleezy, but that's just flat out cheap, dirty and disgusting. Offering huge discounts if all 3 are bought, at a price which is almost half off the cost of the processor alone. I understand discount in bulk, but that is down right unfair.
No one else stands a chance when Intel does something like this. How can Nvidia step in and try to sell a graphics chip to someone when they would have to pay $45 for the processor alone and then have to purchase the chipset and graphics chip?
I will now do my best to avoid anything Intel! I've stuck with AMD for a long time, but was very close to going with an Intel i7 940 for my next gaming box. Not now though!
http://en.wikipedia.org/wiki/AMD_v._Intel
The only thing I can think is that the Atom can't be worth $45 in the first place.
Yes, you can get a break if you buy your home and auto insurance together. It's still more expensive than just getting one or the other. In Intel's case, you get all three for LESS than the price of ONE! Intel is selling at below cost. This can make sense in some circumstances, like a gaming console, where the manufacturer plans on making up the cost with future software sales. This is not the case for Intel. The only real benefit for them here is they'll run Nvidia out of business and then they'll be able to significantly raise their prices.
Buy the 3-chip set for $25 and throw away the other 2 (or resell them, etc). Keep the Atom and produce ION motherboards for Netbooks and blow away Intel chipset Netbooks.
I would love to have an ION based netbook! If you don't know about this setup, look it up - it's a real GPU combined with a chipset, and it's graphics processing power blows away everything Intel produces.
Is it just me, or do they seem jealous? How about desperate? We would think that here in America, firms would be safe from such nonsense, but it likes like Obama is now pursuing "anti-trust laws" that could go beyond the real definition of a monopoly to allow the state to control these private entities. You'd think he'd learn after all of the failed attempts across the pond for command-and-control economies. I guess they prefer the power over a failing state than letting the country prosper.
You do realise AMD are American don't you ? They were formed by ex-Intel employees. Both Microsoft and Intel used their dominant position to keep their place at the top of the tree even with crap products, AMD Athlon 64s were considerably faster and cheaper than Intels Pentium 4 & Ds yet Intel still had the market sewn up because they paid customers to only stock their chips. Vista was a disaster for Microsft yet it is still installed by default on 90% of computers for the last three years.
This has nothing to do with USA vs EU and everything to do with a FAIR market, I want fast cheap chips not slow expensive ones and that is what would happen if Intel are allowed to crush any worthy competition through bribes and downright intimidation.
GROW UP the EU doesn't need to chase American firms for money, they don't have a Trillion $ + debt hanging around their neck LOL
- by fdunn3 May 19, 2009 5:47 PM PDT
- Somebody (FTC, EU, etc) needs to look at the cost of marketing these chips by themselves against the "bundle" and if Intel is selling at a loss then the FTC and EU can stepin.
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(24 Comments)If I were representing Nvidia I sure would file a complaint.
Intel is just pain crooked.