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Intel trashes huge Gateway rebate scheme

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Earlier this year we reported that Intel had managed to persuade PC manufacturer Gateway to pull out of producing machines using AMD Athlon processors by offering a large rebate scheme to the company. Details have now emerged about just how much that scheme was worth, and why Gateway, as we reported yesterday, now intends to use the Athlon processor after all. When we first reported on the scheme in summer, it seemed that the deal Intel offered Gateway was worth around $20 million. We now understand, from sources close to both companies, that the deal was worth very much more than that, closer to between $80 million and $100 million. Further, the deal offered Gateway a rebate of $50 for every Intel processor it bought, whether it was a Celeron, a Pentium III or a chip for notebooks. And Intel, unilaterally, decided to pull the rug on this contract some little while back, meaning that Gateway felt free to once more start using AMD processors in its machine. However, the reasons for Intel deciding to end the contract still remain unclear. An Intel representative said he could not comment on specific deals with the company's customers, but said that the Intel Inside marketing scheme had 1,500 members worldwide and since it was set up in 1991 had delivered a sum close to $4 billion in total ad value. Gateway was unavailable for comment. Hardware site AMD Zone has posted reliable information for some weeks that Gateway will use the AMD Athlon in some of its machines. It now says the machines will be launched on the 29th of this month. On that date, AMD will announce its 750MHz Athlon, using .18 micron technology. ® See also AMD suffers further Gateway blow Gateway walks away from AMD Gateway goes AMD AMD pushes date of K6-3 forward No Athlon from Gateway...officially, apparently AMD wins must shiver Intel's timbers

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