Intel Pricing Policy Penalizes the ION Platform

Posted 05/14/2009 at 6:06am | by Paul Lilly

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Netbook makers hoping to offer Nvidia's ION platform will have to open their wallets a little wider than what they might be accustomed to. Straight from the horse's mouth, Intel charges more for the Atom processor as a standalone product than it does when combined with its own chipset.

"We have historically offered better pricing to people who buy more product," Intel CEO Paul Otellini said during a conference call to discuss Intel's $1.45 billion fine from the European Commission.

In January, Nvidia was asked how much the ION would add to the cost of a netbook.

"It's hard to guesstimate, but our GPUs have a price range from $30 to $40," responded Jen-Hsun Huang, Nvidia CEO. "It replaces two other chips, the Northbridge and Southbridge, and will certainly be less than that."

Or more, depending on the price premium Intel puts on ordering a bare Atom chip. Given the record setting fine Intel just received for alleged anti-competitive practices and the existing bad blood between Intel and Nvidia, this could get very interesting.

Image Credit: Intel