Intel reportedly reserved $ 3 billion in 2019 to competitively block AMD

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Intel has been reserving 3 billion dollars aside to offer 'discounts' to its customers, and there actually is a photo to back that claim. The recent official unveiling of Cascade Lake X might already the result of that program as the CPUs are selling twice as low per core compared to the chips from Intel's previous generation.



It is Youtube channel Adored TV that explains in a video a slide what exactly Intel would be doing in order to be a stronger party than AMD, and that is injecting money to create discounts that make sure their customers buy intel processors.

It is quite an accusation based on one slide to be honest. If correct, Intel just in 2019 spend three billion US dollars in that program. The money would be used for example for price reductions. Intel names this 3B program the "2019 meet comp discount," Intel's net profit in 2018 was just over USD 21 billion alone. Next to the price reduction on the recent procs, you also need to think bigger. Such money is probably being spent lowering Xeon contract prices to large customers, which has been rumored for some time

The intended effect if the 3B reservation would include price reductions that would make AMD less profitable. According to the slide, Intel in 2019 is to provide ten times as much money for the competition - The slide is labeled " Intel's Scale Advantage ... Financial Horsepower". Even if the accusation was not made directly, if true it is Intel's using its monopoly against the competition.

A disclaimer, the authenticity of the slide cannot be guaranteed. There is currently no evidence of illegal activities nor is it certain that the slides of Adored TV are genuine, or even from Intel at all.

 


Intel reportedly reserved $ 3 billion in 2019 to competitively block AMD


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