Paul and Thread,
It is interesting that Intel is releasing it's fastest MP's while supplies are limited. Their normal product introduction strategy was to have a good supply in the hands of the box makers well before the product announcement, and have plenty of product availability on the Monday when the press releases go out. This was great because you had announcements not only from Intel, but also from all the box makers, simultaneously. It certainly helped consumer awareness.
The AMD folks would say one of two things. One, Intel is having manufacturing problems and is faltering in their execution, or Two, Intel is rushing the chips to market before they are ready for mass production to keep ahead of AMD. The early release appears to be a deliberate marketing strategy, and I think there is probably some truth to number two.
But I also think there is some opportunity in announcing products before there is abundant supply. The profile of the end user that would buy an 800 megahertz computer at introduction is a REAL early adapter, someone who would pay whatever it costs to have the latest and greatest. This person is not concerned with price/performance, they have to have a faster chip than the guy (or girl) next door. The fact that there is limited availability actually makes the produce more appealing.
Intel could consider the following if they stick to their current strategy of early release:
- Raise the price, but lower the minimum order, and allocate small numbers to as many box makers as possible. They would then have wider distribution, but consumer would have to buy now before the reseller ran out, creating a sense of urgency. (this could also piss off the biggest customers, Dell comes to mind)
- Advertise/promote the product as limited in supply, almost like a limited edition. Feed the feeling of the early adapter that they can be the first on their block to have something unique.
- Time the release of the next latest, greatest MP so that it is at the same time as they have good supplies available, and lower prices for the current greatest MP. That way there is always an exclusive product on the market.
They might even call it the Intel Pentium III 800LE (for limited edition). Later, drop the LE.
The purpose of marketing is to add value to your products, within the framework of your manufacturing and product development abilities. This might work.
Just some random thoughts on a rainy Saturday morning in Florida. Too lousy out to play golf, looks like today is the dreaded Christmas shopping day, along with 100,000,000 other people.
John |
