Dell (DELL)

Dell allegedly received billions of dollars in payments over a four-year period to use chips made by Intel Corp., payments that sometimes totaled more than the computer maker's reported profits for a fiscal quarter, according to a lawsuit filed on Wednesday.
Dell, the world's third-biggest computer maker based on shipments, was allegedly paid about $6 billion between February 2002 and January 2007, according to the lawsuit. In one fiscal quarter, the lawsuit says payments from Intel constituted 116% of Dell's reported net income. The allegations against Intel are part of an 83-page lawsuit filed by New York State Attorney General Andrew Cuomo. The lawsuit alleges Intel paid computer makers to discourage them from using chips made by competitor Advanced Micro Devices Inc. (AMD). Other computer makers alleged to have dealt with Intel include Hewlett-Packard Co. (HPQ) and International Business Machines Corp. (IBM).

Nov 5 · 3:02:00 PM · Related: Intel
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by Michael Oliveto