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

To: Amy J who wrote (180566)	3/31/2005 11:24:54 AM
From: Lizzie Tudor	Respond to of 186894

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. this dialogue reminds me a little of when Apple computer raised prices in the early 90s (right at the exact moment they were gaining a foothold in corp america with a superior o/s vs. windows 3.0)- a time when component prices were dropping and other vendors were lowering prices ... a decision made by the arrogant showman Jean Louis Gassee... this move cost them the trust of the business market and they never recovered imho. Of course apple had more problems than just pricing. But pricing is key to any business model, you have to know how to play this.

To: Amy J who wrote (180566)	3/31/2005 5:02:14 PM
From: Saturn V	Respond to of 186894

Ref ..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. It is a very slow uphill battle, but victory is still possible. You need to do the following: A. Offer a dramatically better product at a good price. If you have a "me too product" you are out of the ball game. The better performance should translate into a dramatically superior cell phone as perceived by the cell phone customer. B. Offer an "long term anti-gouging pricing contract". You have to offer a guaranteed price at specific volumes. If the actual market price in the future is lower than this guaranteed price, the customer automatically get this lower market price. C. Establish momentum: It is likely that a ticked off customer like Nokia may still hate Intel, and may not even be willing to make the engineering investment to evaluate the Intel product by building a prototype phone with an Intel chip. But if Motorola begins to offer a phone based upon the Intel chip, and begins to gain market share due to the unique attributes of the Intel chip, a sensible Nokia management may have no choice but to join the bandwagon. In this respect Motorola has recently introduced smart phones based upon Intel's XSCALE. Symbian Corp, the cell phone operating system developer heavily influenced by Nokia, announced six months ago that it was porting the Symbian Software to the Intel XSCALE. This suggests that the door at Nokia may be opening a little bit. The coming year will show if Intel is actually gaining momentum.