Bookmark and Share


The head of Nvidia Corp. said that even though Intel Corp. agreed to pay its arch-rival $1.25 billion in order to settle all legal disputes, the customers still need to be protected from Intel since the company’s business practices were far from fair. In response, Intel said that chief exec of Nvidia was also unfair in his allegations towards the chip giant.

“We'll keep growing as a company, but further action needs to be taken to protect consumers, said Jen-Hsun Huang, chief executive officer of Nvidia, reports Cnet News web-site.

Mr. Huang believes that discounts Intel provides to its customers who acquire Intel Atom processors and chipsets in bundles are unfair and undermine Nvidia’s ability to popularize its GeForce 9400M (Ion) core-logic on the growing market of netbooks and nettops.  The highly-ranking executive believes that the tactics is both aggressive and anti-competitive.

“Intel's tactics with Ion have been the most aggressive we've seen from a competitor. They have offered the Atom [a total of three chips] for $25, but when the one-chip Atom is used with Ion, it sells for $45. A customer can't even choose to resell the chipset and use Ion instead. What's the point of Nvidia getting an Intel bus license if it's impossible to overcome Intel's pricing bundles?" said Mr. Huang.

Bundling schemes are not something new for Intel: the company became massive successful with its Centrino brand (which required notebook vendors to use a Pentium processor, an Intel chipset and an Intel wireless network controller to put Centrino mark on their laptops) earlier this decade. Still, Nvidia is also known for forcing customers to use its own components exclusively: the firm did not support SLI multi-GPU operation modes on platforms that were based on non-Nvidia chipsets. In addition, from time to time the company, according to some reports, used to sell its high-end graphics chips only on condition that its partners would acquire lower-end models as well.

Intel says that selling products in a bundle or negotiate regarding exact pricing is not something unfair and that Mr. Huang’s claims are baseless.

“He's playing a trick of numbers. He's giving you a $45 list price – that nobody pays – for a part and then a negotiated price (which is more realistic). He's mixing apples and oranges. We have scrubbed and continue to scrub our pricing practices as it relates to chipsets and processors. It's all above cost. And that meets the legal standard worldwide," said Intel spokesman Chuck Mulloy.

Tags: Nvidia, Geforce, Nforce, Intel, Ion


Comments currently: 3
Discussion started: 11/18/09 12:20:32 AM
Latest comment: 11/19/09 06:40:26 AM
Expand all threads | Collapse all threads


Who made this crackhead the CEO???
0 0 [Posted by: tdevinda  | Date: 11/18/09 12:20:32 AM]

Nvidia is "protecting customers"?!?! Lol. They're no better than Intel here. Hey mister Jen-Hsun Huang, how about trying to produce GPUs that gamers want?
0 0 [Posted by: zaratustra06  | Date: 11/18/09 08:50:06 AM]
- collapse thread

He's busy kissing up to Apple right now. All the best hardware is in a Mac after all. /sarcasm
0 0 [Posted by: JonMCC33  | Date: 11/19/09 06:40:26 AM]


Add your Comment

Related news

Latest News

Sunday, August 24, 2014

6:12 pm | Former X-Bit Labs Editor Aims to Wed Tabletop Games with Mobile Platforms. Game Master Wants to Become a New World of Warcraft

Thursday, August 21, 2014

10:59 pm | Khronos Group to Follow DirectX 12 with Cross-Platform Low-Level API. Khronos Unveils Next-Generation OpenGL Initiative

10:33 pm | Avexir Readies 3.40GHz DDR4 Memory Modules. DDR4 Could Hit 3.40GHz This Year

12:10 pm | AMD to Lower Prices of A-Series APUs for Back-to-School Season. New Prices of AMD A-Series APUs Revealed

Wednesday, August 20, 2014

10:53 am | AMD to Cut Prices on FX-9000, Other FX Processors: New Prices Revealed. AMD to Make FX Chips More Affordable, Discontinue Low-End Models

10:32 am | LG to Introduce World’s First Curved 21:9 Ultra-Wide Display. LG Brings Curved Displays to Gamers, Professionals

9:59 am | AMD Readies FX-8370, FX-8370E Microprocessors. AMD Preps Two New “Mainstream” FX Chips