By Ben Charny NOV. 4, 2009
(DELL) allegedly received billions of dollars in payments over a four-year period to use chips made by Intel Corp., payments that sometimes totaled more than the computer maker's reported profits for a fiscal quarter, according to a lawsuit filed on Wednesday. Dell, the world's third-biggest computer maker based on shipments, was allegedly paid about $6 billion between February 2002 and January 2007, according to the lawsuit. In one fiscal quarter, the lawsuit says payments from Intel constituted 116% of Dell's reported net income. The allegations against Intel are part of an 83-page lawsuit filed by New York State Attorney General Andrew Cuomo. The lawsuit alleges Intel paid computer makers to discourage them from using chips made by competitor Advanced Micro Devices Inc. Other computer makers alleged to have dealt with Intel include Hewlett-Packard Co. and International Business Machines Corp. The lawsuit doesn't specify whether Dell is currently receiving payments similar to the ones alleged. But a footnote says "there is evidence that Intel continues to apply pressure to Dell to minimize AMD's ability to compete effectively." The supposed payments raise questions about Dell's health, suggesting the Round Rock, Texas, company relied on subsidies from Intel to maintain its level of profitability. Dell has struggled to cut costs and streamline its operations to catch up with competitors, like H-P. The suit "could impact Dell's profitability," said Shaw Wu, an analyst at Kaufman Brothers.
Read more here -->Link
No comments:
Post a Comment