PB, Thread, re: <"Intel has in the past taken the initiative in establishing new markets or market segments. If it becomes big, they do a handoff," said Nathan Brookwood, principal consultant with Insight 64. Still, conflict could appear depending on Intel's future actions, McCarron hypothesized.>
I can't think of an instance where Intel did a "handoff" of a product category (maybe I'm forgetting).
From a strategic standpoint, you also have to wonder where the Intel is leading the home PC market. First they are endorsing and promoting the Internet appliance, second they are coming out with a "system on a chip" (Timna <sp?>). It seems that Intel feels it can't reach the remaining 50% of non-PC households at the current price points, and needs to fill that gap with lower end products. The obvious question is what will happen with the current $1K+ home PC market? Starting as soon as the 4th quarter, there has to be at least some dilution of sales into these new products, I'm guessing at lower ASP's and GM. It's great for the incremental sales, but is it worth it for the lower ASP's? Does Celeron then become the high end home PC product?
Now you will have Internet Appliance (will they come up with a catchy name) - Timna - Celeron - PII - PIII - Xeon - ITanium. Is segmentation going too far?
Lot's of questions...
John |
