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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: L. Adam Latham who wrote (127380)	2/14/2001 2:10:45 PM
From: Tony Viola	Read Replies (1) \| Respond to of 186894

Adam, from Briefing, and I wonder if any truth to it, and, if so, could Intel make this one profitable? 12:12 ET Conexant (CNXT) 17 5/16 +1 3/16: Hearing trading floor speculation that the Internet infrastructure business that Conexant had at one point hoped to spin-off as an IPO might now be sold outright to Intel (INTC). Intel has enough "non profit" organizations. Tony

To: L. Adam Latham who wrote (127380)	2/14/2001 2:18:04 PM
From: Tenchusatsu	Read Replies (1) \| Respond to of 186894

Adam, <The fact that you have successfully associated the ad campaign with the product shows it is working> I've heard this before, but is this association positive or negative? You have to wonder ... Tenchusatsu

To: L. Adam Latham who wrote (127380)	2/14/2001 11:33:10 PM
From: Tony Viola	Respond to of 186894

Adam, guess what, it's Blue Man Group for P4 also. Copied from Raging Bull Intel: Intel P4 campaign to break Feb. 19 Campaign emphasizes multimedia, extended PC concept by Tobi Elkin Intel Corp. on February 19 breaks a multimillion-dollar global ad campaign for its Pentium 4 microprocessor in a bid to stimulate sagging PC sales, according to people familiar with the company’s marketing plans. The campaign, created by Intel agency Havas Advertising’s Messner Vetere Berger McNamee Schmetterer/Euro RSCG, New York, will feature performance artists Blue Man Group in TV, print and online ads that convey the multimedia-rich experience a computer enabled with a P4 chip will deliver. At least four TV spots are planned. Outdoor advertising is under consideration. Intel tapped the quirky blue-faced artists for its Pentium III campaign which debuted last fall, spending an estimated $300 million on the global launch (AA, Oct. 9, 2000). Intel's spend on the latest push was not known, but insiders say it is at least comparable to the P III spend. The P4 campaign deploys first in the U.S., followed shortly by Europe, Asia/Pacific and other regions. Creative is said to flag the fun consumers can have using a computer enabled with the super speedy P4. Intel has typically touted processing power and speed to get people to upgrade. Intel will also hype the experience consumers can have using a P4-enabled PC to sample streaming media, create, edit and view movies, do music downloads, and other fun features. The trouble is, says Roger Kay, research manager at International Data Corp., "For most users, the bandwidth issue trumps the desktop performance issue." In other words it doesn't matter how much processing power a person has if they still have a dial-up Internet connection. That said, Mr. Kay praised the Pentium 4-enhanced PC he's using: "it handles multimedia really well." He cited Webcast software that enables users to broadcast directly to the Internet from an IP address. For the enterprise customer, Intel will tout visual computing functions and other aspects of the network computing experience. Like partners Microsoft Corp., Dell Computer Corp. and Compaq Computer Corp., Intel is busy trying to hype the extended PC concept, positioning the PC as a digital hub and activity center for creating digital movies, adding on PC cameras, MP3 music players and more. The company first shared the concept last month at the International Consumer Electronics Show in Las Vegas. Intel this year will deliver branded consumer PC peripherals, such as digital music players, in an effort to stimulate demand for processing power. The effort to get more mileage from the PC comes as Intel and its Wintel brethren experience a major slowdown in the PC market, both on the consumer and corporate sides of the business. The global PC market grew only 9.2% year-on-year in the fourth quarter 2000, and the U.S. market grew only 0.3%, according to IDC. At least one analyst thinks Intel needs to rethink it's marketing and that both consumer and enterprise customers need to be convinced to buy the more powerful P4 machines. "That's the question the campaign has to answer: Why do people need all this power?" said Rob Enderle, research fellow, Giga Information Group. Mr. Kay agreed: "The need for this sort of speed is not entirely demonstrated. ... There's only a small segment of people who could justify it." A baseline P4 system is approximately $2,000. "[Intel] should have continued to argue that the PC was relevant and vital ... no number of MP3 players is going to fix that," Mr. Enderle said. "They misdirected their marketing dollars and funded a campaign that didn't do anything that they needed to accomplish in the fourth quarter, which is to build demand," he said, referring to Intel's Pentium III campaign last fall that featured Blue Man Group in brand-oriented executions. Intel executives declined to confirm the campaign's Feb. 19 break and were not available for comment at press time. Copyright February 2001, Crain Communications Inc