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Experts: ‘Predatory pricing’ for Intel’s Atom legal

http://news.idg.no/cw/art.cfm?id=891CDE10-1A64-67EA-E4C8554479A2B61E

Robert Dow

Intel Corp. may very well bundle its Atom CPU and graphics chipset to netbook PC makers for a lower price than Atom alone, as rival Nvidia Inc. CEO Jen-Hsun Huang charged last week. Jon Peddie argues that the assumptions may actually be backwards. “If Atom can be sold for, say $20, and Intel can make a profit, and if it can sell the chipset for $5 and make a profit so the combination is $25, then selling the processor (Atom) alone for $45 is simply raising the price,” said Peddie. “There is no law against raising your prices unless you are a government-regulated monopoly.”