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Technology Stocks : Intel Corporation (INTC)

INTC 50.59

+4.9%

Feb 6 9:30 AM EST

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To: Mike Taylor who wrote (34261)	10/7/1997 10:51:00 PM
From: Fred Fahmy	of 186894

Mike, <I guess one of these days, AMD & CYRX/NSM will have enough money to advertise and market their products. Myself, I think they should have spent the money on day 1. > O.K., now you are starting to get the picture. It's Intel's mighty marketing prowess/brand recognition/loyatly/marketing resources that AMD and Cyrix can't even begin to match. They are really in a dilema. They should have been spending money on marketing from day 1, as you say, but they couldn't and still can't afford it. That is what makes competing against a market leader/giant/icon so difficult. Because Intel was there first they were able to build up considerable resources. These resources are now what I would consider insurmountable. There was a time when Intel could not afford to advertise either. Fortunately, at that time they had no real competition and were building an empire without adverstising. Howerver, later when it became necessary to make their name a household word, they had the resources (thanks to prior financial success). You are starting to get the picture. It's not all about products and benchmarks. It's at least as much about marketing and perceptions. Intel does have great technology and R&D (not to mention process capablility/capacity) but there marketing is critical. They spent millions and millions of dollars on a very successful Intel Inside campaign. As for comfort level....the person you referred to at work who bought a Cyrix is an isolated example. IT/IS managers remain very very reluctant to stick their necks out and buy anything but Intel, especially for critical applications such as servers. It's not worth saving a little money to get a lesser known quantity. IT managers know and trust Intel products. FF

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