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Intel rebate programme causes further chip price reductions

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Dealers and distributors close to Intel's plans have revealed a rebate system which will give further price reductions to people who buy its processor and other products. The IPD rebate system, available only to dealers who buy through Intel authorised distributors, not only provides its customers with rebates on processors, but also gives them a two percent merchandising incentive payment, the sources said. That, in addition to rebates, is intended to further put pressure on Intel competitors -- such as AMD. Rebates for those joining the system, amount to $23 apiece for 600MHz and 550MHz Pentium IIIs, $15 for 500MHz Pentium IIIs, and $5 for the now doomed PIII/450. There are even rebates available on the already cutthroat Celeron family of chips, amounting to around $3 at the high end. The Xeon family also offers whopping reductions, with the 2Mb Pentium III/500 Xeon having $126 lopped off its price. Intel has also extended such rebates to hubs, routers, chassis and a heap of other products, showing it can afford some pain in its gladiatorial battle with AMD... ®

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