Jim, RE: "The Intel sales force is "scramblin'"?"
I sure hope so.
I've been selling into retail my whole career. Everything is a double edged sword. To get a large account, the OEM probably has to offer price protection, and this may or may not work it's way upstream to the microprocessor manufaturer. So you sell, say, 5 units to each Costco location. At that point you better have some great marketing to back your program, or there will be no sell through. IF you have made a price guanantee, you may be liable for discounts if the units don't sell & they remain in inventory, and the price goes down. Probably bulk close out dollars. Also, you build your own inventory on the expectation of sell-through, if it doesn't happen, you are sitting on discounted dollars that can't be used for other customers.
So the success of AMD at Costco and Best Buy is certainly impressive. If the consumer buys the products, it's great for AMD. If they don't, that original revenue quickly can become a liability. Retail is a real tricky balancing act.
I wonder how Timna (sp?) will fit in later this year? At retail, right now you have the lower image brand staking out the higher end (perceived) performance, and the higher image brand working the lower price points. Not the best situation, and I imagine confusing for the consumer. I'm sure Intel isn't happy with the situation, and I'm not sure AMD should be.
John |
