Intel’s audit team examines the UAE

Intel’s Europe, the Middle East and Africa (EMEA) auditing team has been in Dubai this month to examine the processor integration rates of various assemblers belonging to its Intel Inside programme.

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By  Published  December 23, 2006

Intel’s Europe, the Middle East and Africa (EMEA) auditing team has been in Dubai this month to examine the processor integration rates of various assemblers belonging to its Intel Inside programme. The UAE is the second Middle East market to come under close scrutiny from Intel’s bean counters in the last five months following an earlier review of system builders in the Egyptian market. It is not clear how many UAE assemblers Intel plans to visit during its stay in Dubai. Reliable channel sources claim that Uniexcel and FDC are two companies that have complied with the requests of the auditing team. Sources in the market claim the CPU vendor originally intended to carry out more audits in Dubai than it has done so far. However, at least four assemblers are believed to have forfeited their Intel Inside status by notifying Intel several weeks ago that they would not be participating in the audit. Intel first told UAE assemblers about its plans to perform physical audits towards the end of October. In correspondence seen by IT Weekly sister publication Channel Middle East, the vendor informed partners that it aimed to “validate the accuracy of the current processor integration and to ensure advertisements and claims are in compliance with the terms and conditions” of its channel programme. It instructed PC assemblers to prepare for the visit of its auditing team by compiling a broad range of company records, including manufacturing details, sales invoices and purchase records, as well as arranging private workspace for up to five auditors for the onsite visit. Intel warned assemblers that anybody found overstating their integration rates or failing to comply with the audit could face a range of punishments, including suspension from the scheme and the recovery of prior marketing payments. The chipmaker said the audits were an “on-going practice” and that it would not comment on private discussions with other companies. A similar operation in Egypt saw a number of assemblers suspended from Intel’s partner programme. As a result of Intel’s audits in Egypt between July and August, three local assemblers confirmed to Channel Middle East that Intel had stopped some of their payments.

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