Intel rivals rush to defence of Dixons Group

Price fixing accusations against Dixons Group have taken a twist as its accuser Intel was charged with attempting to use the claims to punish the retailer for its own diminishing market share.

The saga began with Craig Barrett, chief executive of Intel, accusing Dixons of charging 'ridiculous margins' (PC Dealer, 25 November). Subsequently, Trade and Industry Secretary Peter Mandelson requested an Office of Fair Trading investigation. But the tables have been turned on the chip giant last week through an unlikely alliance of Cyrix and AMD.

Rana Mainee, European planning manager at AMD, said: 'The Intel charges are hypocritical - it's easy to point the finger then run away. I haven't seen Intel making a huge effort to push prices down.'

He added higher prices were due to a number of factors, such as expensive advertising costs in the UK and the higher price of retail space on the high street.

Mainee claimed Dixons had cut prices to counter growing competition from companies such as Tiny Computers and supermarkets. 'Dixons understands that it has lost its supremacy. Intel doesn't understand that it is losing its dominance and wants to blame Dixons for market conditions. The blame for any dip in Dixons' sales figures in the fourth quarter could be placed at Intel's door,' he added.

Alain Tiquet, European strategic sales manager for Cyrix products at National Semiconductor, added: 'The difference in price between the basic box in the UK and Europe is negligible, but Intel machines are more expensive.'