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Intel Corporation Message Board

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  • ideal_invst ideal_invst Jan 22, 2012 1:03 AM Flag

    Otelini said.............

    > Intel will build a family of A6/x86 combo processors to allow
    > low to moderately priced CPUs.

    This statement breaks the logic of the entire article.

    (1) There is no need for Intel to help Apple market lower-priced products. Apple has always been about skimming-the-market with high-end, high-cost products. If Intel reduces its prices for Apple, Apple may drop the price by less than the Intel reduction and keep more for itself. Apple would increase its market share and amass even more cash - which would impede and further reduce Intel's negotiating power with Apple.

    (2) Helping Apple increase its market share would result in even more trouble for Intel's x86 OEM partners who are much more loyal to Intel than Apple ever will be.

    (3) Apple is an unstable and unpredictable partner, and often ruthless in negotiating with their suppliers.

    With a customer like Apple, Intel should do what is reasonable and necessary to get them as a customer - and proceed cautiously without shooting themselves in the foot !

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