January 04, 2006

Leaping in all the wrong ways?

Posted at January 4, 2006 04:58 PM in Technology .

Back in 1998, I assembled my first custom computer from parts that I selected. I remember being both overwhelmed and excited by the number of choices that I had for all the different components, but by far one of the biggest choices I remember debating was the motheboard. On top of that, I had to decide between an Intel or an AMD processor (Cyrix was still around but I knew better than that). In the end, the price-performance ratio won out and I opted for the AMD K6-2 processor running at 300 mhz, and an Epox MVP3E motherboard.

Lately, though, it seems that AMD has been doing almost everything right and Intel has been flagging. AMD reigns almost uncontested in the 64-bit world, and Intel has all but abandoned their 64-bit architecture for AMD's. So I guess in some ways I'm not surprised that Intel is choosing to make a new logo and slogan, even though Intel Inside is probably one of the most successful marketing campaigns in the world of technology. Anyway, their new slogan is Leap Ahead, which I find amusing.

Leaping ahead of what, exactly? They certainly aren't leaping ahead of the competition right now. Nor is any regular consumer going to leap anywhere by using an Intel processor over anything else the way things are going. PC Magazine's article on the logo quotes Eric Ross, an analyst with ThinkEquity Partners, who sheds some possible light on this subject: "The reason they are doing this is they need to move away from the PC to being a solution provider. The real growth for the next five years is cell phones, and for the next 10 years is probably consumer electronics, and Intel has done a really poor job of penetrating those areas."

So does this mean that we should be expecting Intel cell phones and mp3 players? Why exactly would I want to buy an Intel cell phone, when I could buy a cell phone frome Samsung or Nokia, both companies who have been making cell phones for many, many years? Shouldn't they already have the superior product? Why would I buy an mp3 player from Intel when I can have an iPod or a Zen? Most markets have a #1, a #2, and everyone else. Generally #1 and #2 don't change, or if they do, it takes a long time.

So let's say that Intel starts selling cell phones. Are people supposed to say, "Oh look, they're inside my computer, they must make a great cell phone!" More likely, they'll say, "Hmm, should I buy from Samsung or the company that makes the little chips in my computer?" Intel's Intel Inside campaign has been so successful that Intel dominates the market in processors, and dominates people's mindshare... for processors. Not mp3 players or cell phones.

I don't think Intel is going to leap anywhere. Instead of trying to expand into markets that are already established and dominated by other players, why not figure out how to stop AMD in its tracks before they erode any more of Intel's market share? But what do I know? I'm just the guy on his armchair here spouting off his thoughts. I don't care if you have Intel Inside or Leap Ahead with Intel, as long as your leaping with BitWise too. :)

Comments

Right on.

Posted by Zach at January 6, 2006 10:37 PM
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