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Thursday, January 14, 2010
Intel Quotes AMD's Executives To Defend Against FTC

Intel officially responed to the accusations of the Federal Trade Commission, quoting AMD's executives own words admitting AMD's weakness to compete with Intel's products.

AMD's failure to offer stable platforms and part of its issue with mobile systems in turn was a result of Intel's decision to invset in the design and manufacture of chipsets, a critical complementary product to microprocessors, which AMD did not do, Intel said in its official reply to FTC's accusations.

Intel added that AMD's highest ranking sales executive in 2004, AMD's Executive Vice President Henri Richard, had internally described AMD as "pathetic" for "selling processors rather than platforms and exposing a partial story, particularly in the commercial segment, that is clearly inferior to Intel's if we want to be honest with ourselves"

The same executive declared that "if you look at it, with an objective set of eyes, you would never buy AMD. Icertainly would never buy AMD for a personal system if I wasn't working here," according to Intel.

He also declared that "if I was a decision maker in a Fortune 500 company, Iwouldn't use AMD". He added that AMD was saddled with a reputation that "we're cheap, less reliable, lower quality consumer type product."

Intel also added that even AMD's chairman and chief executive officer Hector Ruiz has confessed AMD's helplessness to fight in the space of mobile computers.

"We were going to not be as competitive in the mobile space, even though we knew that mobile space was going to be critical. [AMD] was late with a competitive product in the mobile space," Ruiz is reported to have said.

Intel's complete response to FTC is available here as well as here.

The Federal Trade Commission sued Intel last December charging that the company had illegally used its dominant market position for a decade to stifle competition and strengthen its monopoly.

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