Paul,
There was an interesting post in an AOL Intel board from a fellow named Sotiris K a few days ago and it brought up something that looks kind of funny at first, but it has potential. Any thoughts anyone?
Here's part of the post...
<< Ok so here is a wild idea about what intel could do with the 1000$ pc
problem. Lets see, please dont laugh. This was originally an attempted joke.
What seems to be the problem with 1000$ pc?
1. Its not intel inside necessarilly. This gives the chance to small clone
makers to sell stuff that intel would otherwise do and gain market share plus
brand name recognition for higher class clones later.
2. Even if its intel inside it represents a very low margin part of the chip
spectrum market that intel sells. Clearly its against intel's business model
to promote selling those pcs. Or is it?
Sometimes its futile and immature to choose to go against the flow of
events. However it is usually wise to divert the flow ,or even accelerate it
and send it in directions that would be of future benefit. Directions that
the flow itself wouldnt natuarally choose but would easily select if the
current conditions were appropriately transformed. The current long term
business model then, wouldnt have to be altered as a result of the new flow
of
events. Instead it would gain strength in an unconventional manner!
Well how about taking the weakness and transforming it into future
strength. Instead of intel fighting the 1000$ pc market and managing to
appear as the bad rich relative, why not try to help it explode even more!
Imagine if intel came out one day and advertised the following campaign: To
every customer (with no prior computer exposure- not a restriction though
just an idea base) that wishes to enter the market with a low end economical
sub 1000$
pc to start with , we will give that customer the chance to upgrade at a
20-25% discount over future microprocessor market prices ,within next 1-4
years, into a high level machine of say P2 or merced level processor provided
that he/she will originally chose a sub 1000$ intel inside pc. Now this will
have the following 2 effects:
1. Will put oil into the fire of the sub 1000 pc market by attracting more
customers to join. Clearly it wouldnt be customers like me and you who like
fast machines, or would it? Imagine how many people with no current pc
exposure would chose intel based over other clone machines in the low end
with the future upgrade possibility in mind. Imagine also how many people
like me and you that love speed would consider buying a sub 1000$ pc now for
grandma
or that summer house in the countryside or a member of the family that
rarely uses your pc now (or you name it --I refer to second or third order pc
in the broad family cycle) with the 25% discount in mind for the upgrade in
the next high level pc . An upgrade in our case not intended for the sub 1000
pc that we just bought (although provided to us with that plan in mind) but
the fast current machine we already have as our main pc and that we would
like to upgrade in 1-3 years anyway! .Now wouldnt that stimulate :a) the sub
1000 market and b) the upgrade market later or even now?
2. The effective promotion of the sub 1000 market would a) press into the
corner further the competition in the low end area that they only hope to
make a $ from! b) create a larger intel inside customer base for future
upgrade cycles to parts of the global world population (US and other) that
would not otherwise consider buying a pc -any pc. Not only the plan would
sustain current business model dominance but also work in creative ways
towards
segments of the population that doesnt enjoy financial prosperity but have
the natural talent and will to engage in the technological revolution.
3. It wouldnt on the other hand affect in a negative way the current high end
fraction of the industry ,as those that required speed would not obviously
change their minds ,because their high speed reasons would remain intact
anyway.
The 25% future discount would be financed partly from the pc box makers that
their current sub 1000 pc sales would benefit from the campaign and partly by
intel itself. Obviously the campaign now would have to be a joined effort by
intel and its box maker partners (HP,CPQ,DELL etc).
Well I told you it was intended as a joke for intel fans! So be it. Have a
nice Sunday evening .
Sotiris K. >> |
