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Thread: Infineon Pleads Guilty to Fixed DRAM Prices

  1. #1
    Ultimate Member Cyan's Avatar
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    Infineon Pleads Guilty to Fixed DRAM Prices

    *Gasp*

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    Member Immoral_2's Avatar
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    So, let me get this straight...they get caught cheating other companies and the public and they get a hefty fine. This means that they will get a 50k fine and no milk and cookies before bed. Whatever fine they tack on to this will no do it justice. Billions of dollars have been acquired illegally and all they can do is fine someone. I'd like to see a complete list of the companies accused of this, that way I can add them to the list of 'do not buy.'
    Ben Mroczek
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    I'm sure the list will eventually come out.
    SysOpt's Illustrious Editor

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    Ultimate Member Strawbs's Avatar
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    But you also have to look at the other side of the coin!

    These major Computer manufacturers (Dell, HP-Compaq, etc.) would demand rock bottom prices if they could, and would play the chipmakers off against each other to force the price down until all but one or two dropped out of the market because they couldn't match the other's price without making a loss (a la intel & amd). When only the 1 or 2 are left they get to charge us just about any amount they like for the small amount we require in order to make up for the loss in profit that companies like Dell, etc. will swallow without chewing.

    IMO Price Fixing in this instance ensures the future of all the major chip makers and encourages lower prices for the little guy, whoever doesn't get a big deal with the computer manufacturers, sells his excess stock to us on the cheap.

    I think the DOJ have the wrong end of the stick, they will only end up creating another monopoly if the punishment is too harsh.

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    I agree with Strawbs. Look to other industries for examples: How many companies has Wal-Mart put out of business simply because they said "Give it to us at this price or you'll never reach market", often with prices so low the company makes no money.

    Now consider the power of Dell. I made my big money selling refurbished office systems, converted to "multimedia" systems, to the public. I'd buy them at auction, and have around $150 total into a complete system including upgrades. When Dell dropped their systems to as little as $400 each new, my market dried up. How does Dell get those parts so cheap?

    Perhaps we have to look at companies like Dell as abusive forces in the market rather than companies who secretly agree to price fixing. After all, it's just a way to protect themselves, even if it's illegal.

    There is no indication of how far this has gone yet. The laws are in place to protect consumers (even corporate customers) from "price gauging". But it might not be a large difference: It could be something as little as $1 a module, just enough to keep the company in the black.

    So we don't know the extent of the problem. Hard to hate a company for a small infraction, easy to dispise them for a larger one. But before you go off deciding not to buy a certain memory product, consider these things:

    1.) Nearly ALL memory manufacturers have been found guilty of this behavior before, you might not end up having NOBODY TO BUY FROM if you boycott!
    2.) Even if you do find a company not involved, you might be limiting yourself to an inferior product.
    3.) Most of us will continue to buy the best performing memory we can get for a certain amount of money. So your boycott will probably only hurt you.

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    If you'd read the full article you'll notice that it's not a $50k slap on the wrist...more like $160 million. I'm not sure what % of annual profit that is for the company but it's not an amount that will go unnoticed.
    The more I study, the more I know.
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    Member blacknight31k's Avatar
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    To me the bottom line is that no matter what the cost of the fine, we as consumers will ultimately pay the price, as no company can assume that type of cost without an increase somewhere. If you are like most people u will buy what is cheaper, but not the power user will always buy for quality and perfomance.

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    Member GrefMofovich's Avatar
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    What's the difference? Both groups probably have their "friends" in the government, to make laws that benefit them. And when one side has the advantage, the other will try to cheat. Welcome to capitalism, my friends. It might be fun in a morbid way to observe the clashing, but this talk of "not buying" is silly... No matter what you do, someone at some point will say jump and you'll jump. Let's instead be glad for what chips we have right now.

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    Ultimate Member Cyan's Avatar
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    Originally posted by GrefMofovich
    What's the difference? Both groups probably have their "friends" in the government, to make laws that benefit them. And when one side has the advantage, the other will try to cheat.
    We're talking about DRAM, I suppose you think Box manufacurers have deep ties in government? shaping our nation behind the scenes?

    Ram, not Oil dude.

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    Member GrefMofovich's Avatar
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    ok, so I was in a bad mood. it's not completely futile. but if you think corps with million $ budgets don't grease wheels... just tend to remind people about this stuff often because I'm against it on principle. in fact I found this to be a most mundane piece of news, but was bored and typuked out something

  11. #11
    Ultimate Member Cyan's Avatar
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    Same for me and my response to your post. Pay it no mind.

    I guess the article does bring to light something that many of us probably don't think about. Just imagine how many other areas this could be occuring in.

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    Ultimate Member TweakerXP's Avatar
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    Everyone here is missing the point...

    CRIME pays more than it use to!!

    You just steal enough to cover your **** when you get caught. Simple.

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    Member blacknight31k's Avatar
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    I have to agree with tweeker on some parts. I know in oil & gas industry. The Fed. says a company could not be fined more than a million dollars a day, so if u make ten million a day for doing it, so how could u go wrong?

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    ACtually price fixing is a pretty good way to stay in business. Price fix, pay a teeny fine, or go out of business - the choice is simple.

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