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Intel Levels Pricing Between Large Volume Buyers, System Builders

Intel is reversing its practice of negotiating special pricing deals for some of its OEM customers, industry sources told CRN.

"They have completely leveled-out the pricing model," said one executive who works in the U.S. distribution industry.

The move was confirmed by sources in the manufacturing, distribution and system builder industries, but all asked that their names be withheld, since Intel has not publicly disclosed the change. It has been the subject of much speculation in the United States, though one source said it will impact mainly buyers in the Asian market.

An Intel spokeswoman declined to comment, and said Intel does not divulge communication about pricing with customers.

A vendor source familiar with Intel's pricing structure said Intel was not getting mileage out of negotiating extra discounts for some second-tier OEMs in regions outside the United States. But, because of recent price cuts by Intel, the source said base CPU prices for OEMs in the United States would be similar to what the channel can purchase through distribution.

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