In a move that has been widely welcomed by resellers, chip giant Intel has canned its global Intel Channel Rebate (ICR) programme.
From 21 August, rebates will be replaced by price cuts for accredited distributors selling boxed products, according to the vendor.
Gordon Davies, commercial director of VAR Compusys, was positive about the move.
"Dealing with Intel's various rebate schemes has been like doing business with the Inland Revenue. Every time you thought you understood the system, the goalposts were moved," he said.
"The market has moved and the dynamics have changed. Intel has listened to its resellers, and I'm absolutely delighted. I think most of the channel will be over the moon."
Davies added that resellers had raised ICR concerns with each new channel representative brought in by Intel.
One Intel distributor, which asked to remain anonymous, suggested the move was at least in part a response to AMD's launch of new, cheaper products such as Sampron, due to ship next month.
"Intel is trying to enhance the perception of its price/performance against its competitor," said the distributor.
"AMD is moving its lower-end XP processors to a new brand, Sampron, and this might have something to do with Intel dropping upfront prices.
"That said, I think most of the channel will be happy that there's price transparency so they know exactly what they are spending."
Intel said it could not comment on future pricing, but would balance CPU prices with the phasing out of the rebate.
"This is something we have been planning for a while," said George Alfs, an Intel representative.
"It was a worldwide decision to drop ICR. This simplifies the paperwork, accounting and transactions involved on all sides."
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