[valley_guy_12]

There's no reason Intel had to give the same price they would have given Apple to another customer.

Intel often cuts prices to favored customers to win business, for example they did so for the original Xbox CPU, to prevent an AMD from being used.

[rickdeckard]

There's no reason for other customers to strangle Intel or move (again) to TI OMAP platform when they find that Apple as a new entrant in their market got favorable terms from one of their suppliers...

In 2006, Intel has just won back Palm from TI and were under incredible pressure from Qualcomm who had their MSM7200 SoC in the pipeline (which integrated both CPU and Modem in a single low-power package).

> Intel often cuts prices to favored customers to win business, for example they did so for the original Xbox CPU, to prevent an AMD from being used.

There's "cutting prices" and then there's selling BELOW COST, without a volume-commitment from the customer for long-term break-even...

[qwytw]

> There's "cutting prices" and then there's selling BELOW COST,

Otellini himself later claimed that they miscalculated the cost regardless of volume.