Intel to stop giving volume discounts to OEMs


— 1:52 AM on May 26, 2006

DigiTimes reports that Intel plans to stop giving discounts to OEMs for volume purchases of its processors, instead opting to implement identical prices across the retail and OEM channels from September onwards. This move is supposedly meant to boost competition between pre-built and home-built systems, and prevent PC vendors from selling their discounted processors in the retail market. Sources tell DigiTimes that retail sales of discounted CPUs have dropped Intel's average selling prices and shrunk its margins, so uniform pricing should help boost the company's profits. Taiwanese motherboard makers also claim the new pricing model could help the company's case in the ongoing AMD antitrust lawsuit.

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