Intel accuses rivals of making mischief

Intel accuses rivals of making mischief
Tom Foremski
Intel has denied charges that it is dumping its graphics chips and accused competitors of taking advantage of the antitrust compliant filed by the Federal Trade Commission.
Speaking to reporters in Japan, Intel CEO Craig Barrett labelled the charges as untrue and said that competitors are responsible for putting out reports of Intel chip dumping. Those reports claim that Intel is bundling its i740 graphics chip with Pentium II orders and is selling the graphics chip for as low as $7. This compares with Intel’s official list price of about $28 each for volume orders.
Even if Intel was selling the graphics chip at low prices, industry observers say that this does not mean that Intel is dumping the chip below its cost of manufacture. This is because Intel has already amortised the plant cost and has very efficient production processes.

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