3. A 'Drug' Dependency On Intel's Cash
Dell paid a $100 million penalty this year to settle the years-long Securities and Exchange Commission (SEC) investigation into its financial practices, but the sum is spare change compared to the billions of dollars that Dell received from Intel over the course of several years as a “rebate” for not selling PCs and servers powered by AMD processors, according to the SEC.
Details of the relationship between the two companies were released in July in a 61-page document that alleges Dell repeatedly sought more and more cash from Intel to cover earnings shortfalls. It was a habit that former CEO Kevin Rollins eventually referred to as a “drug” that Dell needed to “get off” of, according to the SEC.