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Nvidia CEO attacks Intel Atom pricing strategy

Nvidia CEO attacks Intel Atom pricing strategy

It wasn't long before Nvidia's vocal Chief Executive, Jen-Hsun Huang, spoke up about Intel's Atom pricing strategy.

When the European Commission ruled that Intel was guilty of anti-competitive business practices last week, we were surprised that Nvidia didn’t add its own view of the announcement when AMD weighed in. But it wasn’t going to be long before someone at the company said something.

Not surprisingly, that someone was Jen-Hsung Huang, Nvidia’s CEO and President, who said Intel’s chip pricing “pretty unfair” in an interview with Reuters.

According to Huang, Intel sells an Atom processor on its own for $45, but sells Atom, the 945GSE IGP and ICH7 southbridge for a combined $25 to lure business away from its competitors.

After all, any manufacturer looking to use a third party chipset (such as Nvidia’s GeForce 9400M) with an Atom processor will be at a $20 disadvantage without factoring in the cost of the additional chipset.

We ought to be able to compete and serve that market,” said Huang. “I hope it doesn’t come down to [legal action]. We have to do whatever we have to do when the time comes. We really hope [Intel] will compete on a fair basis.[/i]”

Intel was quick to dismiss Huang’s comments and insisted that “we compete fairly.” The spokesperson continued by saying that Intel has never forced bundles onto OEMs and that they were free to choose to buy Atom on its own or as a processor/chipset bundle. “If you want to purchase the chipset, obviously there is better pricing,” he added.

We’ve asked Nvidia a number of questions about Intel’s Atom bundling strategy, but are yet to receive a response to any of our queries. It goes without saying though that we’re concerned that the price difference is too great to make Ion-based machines attractive – I guess we’ll find out specific pricing on Ion-based machines at Computex, but in the meantime we’ll keep our ears to the ground.

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16 Comments

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mjm25 19th May 2009, 15:53 Quote
it's artificial pricing on Intel's part... they are potentially making a loss on the atom + chipset, or put a massive mark up on the atom when sold singley, trying to recoup the market share lost to a rival chipset with increased revenue. i don't see it as anti competitive, intel is competing with a low price, so nVidia will have to compete on a variable of quality, as it has been bigging up HD playback and so on.
badders 19th May 2009, 16:06 Quote
I suppose there's also some sort of clause that stops Manufacturers buying the Atom bundle and throwing away the 945/ICH7s.
[USRF]Obiwan 19th May 2009, 16:20 Quote
Nividia does nothing "fair" too, selling a old videocard as new 4 times in a row. I call that misleading customers...
perplekks45 19th May 2009, 17:08 Quote
But their just unfair to the customers, not other businesses. I think that's where they're coming from. ;)
thehippoz 19th May 2009, 17:30 Quote
I saw nvidia ceo attacks and I wondered if I should even read this.. it's called karma huang! you withheld sli to your own chipsets and licensed it to intels skulltrail for a ridiculous amount of money

who's wearing the clownface now
wafflesomd 19th May 2009, 19:01 Quote
So Intel is offering something for a low price and Nvidia is complaining? Or did I miss something.

Also, can someone please fill me in on this. "Nividia does nothing "fair" too, selling a old videocard as new 4 times in a row. I call that misleading customers..."

I hear people talk about that, but I seem to have missed the whole story.
HourBeforeDawn 19th May 2009, 19:33 Quote
Quote:
Originally Posted by wafflesomd
So Intel is offering something for a low price and Nvidia is complaining? Or did I miss something.

Also, can someone please fill me in on this. "Nividia does nothing "fair" too, selling a old videocard as new 4 times in a row. I call that misleading customers..."

I hear people talk about that, but I seem to have missed the whole story.

8800GT -> 8800GTS -> 9800GT -> 9800GTX -> 9800GTX+ -> GTS250.

pretty much the same card over and over again
bobwya 19th May 2009, 22:12 Quote
Personally I am not surprised that Intel are giving people money to take their chuffing ***** chipsets...

Bob
bowman 20th May 2009, 00:39 Quote
Quote:
Originally Posted by HourBeforeDawn
Quote:
Originally Posted by wafflesomd
So Intel is offering something for a low price and Nvidia is complaining? Or did I miss something.

Also, can someone please fill me in on this. "Nividia does nothing "fair" too, selling a old videocard as new 4 times in a row. I call that misleading customers..."

I hear people talk about that, but I seem to have missed the whole story.

8800GT -> 8800GTS -> 9800GT -> 9800GTX -> 9800GTX+ -> GTS250.

pretty much the same card over and over again

The 8800GT is a cut down 8800GTS and came after it, it's not the same card. It goes like this..

8800GTS (90nm cut-down 8800GTX) -> 8800GTS 512MB (same name, different card - 65nm, 128 shaders, but 256-bit memory bus) -> 9800GTX (pretty much the exact same thing as the 8800GTS 512MB) -> 9800GTX+ (55nm shrink of 9800GTX with zero changes otherwise) -> GTS250 (new name, new cooler, no changes from the + otherwise)
dyzophoria 20th May 2009, 05:23 Quote
LOL @ Nvidia, Huang STFU before you eat out your own words ,lol
perplekks45 20th May 2009, 10:28 Quote
Quote:
Originally Posted by dyzophoria
LOL @ Nvidia, Huang STFU before you eat out your own words ,lol
Those are the posts I live for. Short, to the point and informative.
Chocobollz 20th May 2009, 13:56 Quote
Ooohh yesss~ Whoop his ass!! :p
Red Eye 21st May 2009, 16:39 Quote
Looks like Intel have plans to make it even harder for Nvidia to squeeze into some Atom action.
HourBeforeDawn 21st May 2009, 19:42 Quote
Quote:
Originally Posted by Red Eye
Looks like Intel have plans to make it even harder for Nvidia to squeeze into some Atom action.

ya but it still doesnt really address the decoding issues that the netbooks can come across with higher bit-rate streams and video. Granted it doesnt state what type of GPU or its capabilities so I guess there is still a chance
ch424 26th May 2009, 18:52 Quote
So why can't OEMs buy the $25 package and stick the excess chipset in the bin/on a different mobo?
perplekks45 26th May 2009, 20:58 Quote
As mentioned before they most likely have to agree some kind of license agreement that makes that impossible.
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