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Technology Stocks : Intel Corporation (INTC)
INTC 36.82+1.5%Dec 19 9:30 AM EST

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To: Saturn V who wrote (180557)3/31/2005 3:46:47 AM
From: Amy J  Read Replies (2) of 186894
 
RE: "The customer thinking goes "How can we design in a single source part when the vendor tried to gouge us on multi-source parts. We would be completely shafted if the vendor later tried to gouge us." How could Intel marketing and management be this arrogant and blind in a area considered vital for Intel's future growth ? I am finally seeing a few Motorola smart phones with XSCALE chips, but it should have been a lot better."
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The personality clash between Intel's style and the communication industry was astounding, and resulted in a pricing disconnect between supplier and customers. Pricing isn't purely about supply and demand, it's about trust. The communications industry soundly rejected Intel's style - and this problem wasn't only one person's doing at Intel, but a problem with a clash in cultures.

Sean Maloney changes are an improvement.

Having said that, how is Intel going to earn customer trust back? You don't suddenly raise prices by 20% and expect an industry to ever forget this. The mistake was more costly to Intel than what some may even realize. You articulated it very well.

Regards,
Amy J
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