GIDs in a fix over Intel’s unofficial ban

Mumbai's IT market is agog with reports that around 20 prominent dealers under the Genuine Intel Dealer (GID) program are temporarily being barred from doing any direct business through Intel's distributors. 

According to reliable market sources the step has been taken against all those involved in the sale of repacked and remarked CPUs coming through gray channels.

Although Intel has not issued an official intimation to this, market sources confirm that Intel has put this in an informal way to warn all those who encourage gray sales.

Despite confirmation from affected dealers, Intel has denied of any such step being taken in the Mumbai market. 

“We have not banned anybody from selling our products,” said Amar Babu, GM (Channels) Intel Asia. However, Babu informed, “If anybody is indulging in gray sales of Intel CPUs, then they do not deserve to be in the GID program.” 

Market sources, including some affected parties, have confirmed that Intel has unofficially banned them from doing direct billing with the distributors. 

“Intel want us not to buy from any other sources other than its distributors,” said one GID. "If somebody is offering me a better price for the same product why shouldn't I buy from them? The fact is, Intel is encouraging gray sales by supplying CPUs in large quantities to neighboring countries like Nepal, Bangladesh and Dubai,” alleged an affected dealer.

"Without Intel's support gray goods will never land in India. Internationally, Intel want their sales to go up and hence they dump goods in Nepal and Bangladesh with the full knowledge that it will ultimately get sold in India,” alleged another
GID.

Meanwhile, distributors like SES and Redington have denied of being aware of any such exercise from Intel. In fact, they clearly state that they have not stopped any dealers from buying good. “There is no binding from Intel on us as to whom we should sell to,” said Rajeev Chaudhari, Associate VP, SES Tech.

Intel is reportedly encouraging clean and new GIDs to do direct billing with distributors in order to reduce the gray sales menace. Currently, some five dealers under the GIDs have been left out from this unofficial 'ban'.

Nelson Johny

(CNS)