Chip giants shun the spotlight at Comdex
By Jennifer L. Baljko
Electronic Buyers' News
(11/06/98, 1:34 p.m. EDT)
It's that time of year again. When droves of computer and IT enthusiasts will descend on Las Vegas for that show-of-shows: Comdex.
But, as in recent years, big-name electronics companies such as Intel Corp., Dell Computer Corp., and Lucent Technologies Inc. will be missing from the exhibit floor when the doors open in two weeks.
Instead of pouring money into glitzy booths that draw an endless line of window-shoppers, a growing number of companies seem to be personalizing their promotional efforts by setting up individual customer meetings far from the din of the monster show.
Whether these decisions are based on financial concerns stemming from a down market or are part of a strategic change in trade-show philosophy appears to be a tossup.
For instance, chip giant Intel, a long-time exhibitor, decided to forgo the booth idea this year because of “resource allocation,” a spokesman said. “As in any year, we look at where to put resources in terms of shows,” he said. “A booth at Comdex wasn't the best way to use our resources this year.”
The spokesman declined to say if tough market conditions played a part in the decision. Intel reported year-over-year declines in revenue and earnings for the first half of the year, and flat profits for the third quarter.
Needless to say, Comdex attendees will still feel Intel's presence. Besides setting up one-on-one customer conferences, president and chief executive Craig R. Barrett will appear at the Hilton Tuesday, Nov. 17, as a panelist in a spoof of the “Politically Incorrect” television show.
While this is the first time in recent years that Intel has opted out of the show, Dell and Lucent have taken the sans-booth approach for a couple of seasons, according to spokesmen for the two companies.
Without a formal display to lure passersby, Lucent will use off-site locales to tout its wares. “We have meeting rooms set up,” the Lucent spokesman said. “We know what kind of customer we want to target,” he added. “This has worked well for us.”
For Dell, it has also become a question of competitiveness. “Part of the thinking is that with a booth, you show your competitors your hand,” the Dell spokesman noted.
In addition to holding individual meetings, Dell will sponsor a customer reception and a press conference with chairman and chief executive Michael S. Dell.
Despite this avoidance of what is traditionally the electronics industry's biggest U.S.-based show of the year, organizers still expect more than 2,400 exhibitors and about 220,000 attendees crowding the halls, sidewalks, and taxi queues.
One company keeping its booth up and running this year is Cyrix Corp. The Richardson, Texas, chip supplier will display the synergies and complementary product lines that have surfaced since its merger with parent National Semiconductor Corp. last year, according to a Cyrix spokesman.
“Some companies don't feel the expense of Comdex is worth it, but we've always gotten good results,” the spokesman said. “Now that we're part of National, we want people to see how the merger has come together.”
Another enthusiastic exhibitor is independent distributor Smith & Associates, Houston. While a distributor presence is somewhat off the traditional Comdex path, Smith had good luck last year when it made its debut at the show, and has opted to upgrade its booth from 200 to 400 sq. ft., said marketing manager Aric N. Hooverson.
And unlike other companies showcasing their latest gizmos, Smith will highlight its recent corporate changes, including opening a Hong Kong office and redesigning its Web site, which features spot-market pricing for commodity components, according to Hooverson.
“We had such a good response, we decided to do it again,” he said. “It's a good way to get together with customers and vendors, as well as get our name out.”
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