Khaleej Times Online – Intel is under fire over its channel policy — From the sounds of this story Intel is forcing its product on the overseas channels resulting in an impending disaster. Excellent article. This is apparently still under the radar over here. To me it signals the fact that there are going to be a lot of cheap chips on the market shortly.

DUBAI — Intel, the world’s largest computer-chip maker, is at the centre of a controversy surrounding Dubai’s IT business with several resellers alleging that “stuffing the channel” tactics by the US giant and its local distributors have triggered the collapse of six wholesalers, resulting in total debts exceeding Dh300 million over the past year.

Signalling that “stuffing the channel” — a tactic of selling more inventory than is needed to wholesalers — is finally rearing its head in the Middle East, such serious charges levelled against the world’s leading microprocessor maker by resellers also ignite a crucial debate on several ethical and professional issues impacting the IT business in the region.

Channel stuffing, considered an offence in the West, is resorted to by companies that seek to increase their top-line sales. The practice, rampant in some developed markets, basically amounts to pushing unwanted products onto distributors, resellers and retailers.

found by Michael Silverman