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

To: Maxwell who wrote (58820)	6/25/1998 11:23:00 PM
From: Darren	Respond to of 186894

<< Does anyone know the name for this marketing technique? In the COKE case, a mistake. In the INTEL case, product diversification.>>> In the INTEL case, Celeron is A MISTAKE. To fix the mistake, Mendocino is in A NEW SOCKET. Medocino will be ANOTHER MISTAKE because it is NOT UPGRADABLE. Intel SHOULD commit to ONLY 1 SOLUTION, the Slot 1! Changing strategy in midstream shows managements lack of direction and future vision. Don't hold back now. Tell us how you really feel...I disagree with your assessment. It's not like Microsoft has committed to one operating system, or GM to one car. Different solutions suit different needs, not always using the best technology, but pigeon-holed through marketing to fill a niche. Changing strategy in midstream shows that all is flux -- you should be giving them credit for having the flexibility to change in midstream to get a product out the door...Xerox PARC was notorious for perfect products. How many could they push out the door? NONE! You must be an engineer...

To: Maxwell who wrote (58820)	6/25/1998 11:39:00 PM
From: kash johal	Respond to of 186894

Intel's strategy has been to segment the market. It is clearly an excellent marketing strategy, as it keeps AMD and Cyrix/IDTI on the run. Intel I think has learnt a lot from consumer marketing and building brands. The Mendocino will be a "hip" and "different" from the old socket 7's. Technically, we all know that a 266 Mhz CPU is within a few percent of the performance of a 450 Mhz PII for the average user. But that is like saying that people are idiots for buying a $100K porsche vs a $20,000 miata. For most applications (driving around town, highway driving) the miata is just as effective. Intel is giving the customer the choice of paying $4000 for a CPU if the customer wants it. Intel also has $1000 CPU's, $500 CPU's and even $100 CPU's for the more cost conscious customer. With StrongARM Intel will have a $30-40 CPU for appliance apps in the near future. The coke example is in fact a good one. Coca-Cola made a mistake, and then they turned it around by offering classic coke, diversifying their product line and overall increasing total sales and profits. This master stroke was unintended but it worked out great. Intel, I think has figured out the way to keep a few steps ahead of AMD etc.by cutting the low end prices to the bone, while introducing high end high margin products to keep bottom line in reasonable shape. Regards, Kash