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Intel's Moral Dilemma

Last response: in CPUs
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November 25, 2000 9:12:24 PM

Before I start in on my opinion of Intel's business values. I would like, for my own benefit as much as anyone elses, to run through some basic business guidelines. These few, are to me, rules that all businesses must follow in order to be and remain successful.

1. All businesses have a product, whether it's an actual piece of hardware, or information (like Tom's site here). That product must be of high quality and priced comparible to competitors in order to sell. Reliability is a key factor in that it directly relates to law #2 and #3.

2. Brand or product loyalty is of paramount importance. This loyalty is gained and maintained by consistently producing a product that is reliable and performs as indicated. With product loyalty, repeat customers and repeat sales are generated resulting in greater profit.

3. No amount of advertising money can outpace the "<i>Word of Mouth</i>" effect. The "<i>Word of Mouth</i>" effect is as simple as it sounds. A pleased customer passes on his or her opinion to a potential customer resulting in a sale. In essance, a single pleased customer creates a pyramid of positive advertising that can grow exponentially. Someone who is pleased to the point of enthusiasm about a product, is the most valuable sales associate a business can have.

4. Customer care is priority. (This relates to brand loyalty directly) The customer is to be kept well informed with correct information at all times. Questions are to answered promply and curteously.

5. If mistakes are made on part of the business, they are to be corrected immediately. Admitting a mistake to a customer before they realize there is a mistake is crucial. The advent of the internet has made false advertising a precarious venture. Chances are better then not that the truth will be exposed, and this done in a short time.

6. Employees are to be treated with the utmost of respect. Their compensation should match or beat those of the business' competitors and work envirments should likewise be better. The age old anthem that a happy worker works better is true. People will do their job and put their best effort forth if they know they are being paid the best and valued the most by their employers. Ask the many multi millionares that Microsoft has produced. An associate who is proud and excited about their work will relate this way to a customer. You can't expect a customer to get enthusiastic about a product when the associate portrays less then delight.


I could probably go on and on with basic rules of business that are taught in any entry level college course. I chimed in a few off the top of my head that I think apply the strongest to both the information business, and the computer hardware business. I'll breifly sum up why I see Intel at a loss in each area.

Point one relates directly to the price point of Intel's product. New hardware always comes at a greater price, but not necessarily an astronomical price. For Intel to pit the PIII against the Athlon, they would have to match it in price or atleast close the gap considerably. For Intel to pit the PIV against the Athlon, they would have to take the chip off the market and wait 6 months to a year for a time when a profitable release would be feasable. Intel supporters will balk at that statment for sure, but read on.

The reason for the PIV retraction extends directly to point #2. (This is all by the wayside, we know Intel will never retract the PIV) Brand loyalty is of utter importance when dealing in a business where the average upgrade takes place once a year. If Intel is going to release a product, it had better perform well on what its current customers are already using or else it will lose their business to a competitor. Whether their product is positioned for the release of future software or not, it has to perform as expected now. Continued performance increases should be expected as optimized software materializes. If your product is positioned to only use these new optimizations, then they need to be in place before the product is released. This is especially important when touting lines such as "The Fastest". As mentioned above, consumers are more aware then ever before because of the internet. It is much harder to pull the wool over the public eye now then it was even 2 or 3 years ago. There is simply too many sources of free information on the web with too many people plugged in for the holes in false advertisment to not be seen.

On to point #3. This is proven in the success of AMD. They have an almost non-exhistant advertising campaign yet have managed to snag the market share from Intel. This is because of word-of-mouth. People like you and I who read sites like this, talk to those we know and share our knowledge. If a better product is out there for a cheaper price then there is reason for a customer to be excited about a perchase. This enthusiasm carries over into everday daily conversations that directly influence a customers decision. I truly believe that if AMD had any sort of positive public relation campaign active, they would have much more market share then they have. The mass marketing muscle that Intel and their direct associates such as Dell have, is the only thing that I believe keeps mass amounts of consumers from leaving thier Intel loyalty.

Now onto my whole reason for writing this short book:) . I don't want to cross over into a religious or philosophical debate, but I do believe there are certain morals and ideals that remain constant through society. You don't kill, you don't steal, you don't cheat, you don't lie. Basics. In business there is a same logic. Put the customer first because they are the ones who put the bread on your table.

Intel has shown time and time again that they don't value their customers. The pushing of Rambus is the first example I'll mention. The second is the PIV. These are blatant backings of inferior products for astronomical prices. The reasons these sold were because of Intel's position and pull with tech community. This is a cheating of the customer and those who became aware of their computing choice afterwards will forever have a bad taste in their mouth. If Intel continues on its road of underhand dealings and skullduggery, they will lose. Despite where they stand now, giants do fall. Intel still leads in market share, but with every step they take back, AMD takes two forward.

I'll close with this. For Intel to be successful they need to deliver a quality product at competitive prices and performance. They need to drop the idea that consumers are idiots (plainly expressed in their advertising campaigns) and try to gain their lost respect. As a business they have lost those that are tech savy, and the tech savy influence, by word-of-mouth, those who aren't so knowledgeable. The positive cycle that personal opinion can create also works backwards and can spyral public opinion to dismal levels. I don't want to see Intel out of business, competition is good. I just want to see Intel run their business honestly and with good faith. Something they haven't been doing for a very long time.

More about : intel moral dilemma

January 5, 2007 1:25:36 PM

A good Blogging from 6 Years ago. I just dug it up since i found it an interesting read.

From what i could tell from his "making people Happy" statement i could clearly tell that Intel made some Engineers Very, Very happy in order to get them to come out with the Core Architecture.

I'm Quite sure they had Engineers All the way from Pentium M (Tualatin) Core to the Pentium 3 Ones at hand to help Breed them together to get the result you have now called the Core Duo and Core 2 Duo
January 5, 2007 1:32:08 PM

Sharikou????
Related resources
January 5, 2007 1:52:30 PM

Quote:
Sharikou????


I don't think so. Not nearly extreme enough to be him (no intel BK prediction). One of his acolytes perhaps?
January 5, 2007 2:04:59 PM

Quote:
Sharikou????


I don't think so. Not nearly extreme enough to be him (no intel BK prediction). One of his acolytes perhaps?

I dont know.

I made that remark jokingly, but after re-reading his "manifesto", its walks suprisingly parallel to Sharikou's. As if it was a 'sanitized' press release. Especially the end. He dosesnt come directly out and sayIntel is going BK, but he sure dances around the implication with his customer service shpeel.

An acolyte at least...if not the devil himself
January 5, 2007 5:52:57 PM

Blah, blah, blah.

I think intel is bad, and AMD r angels. Yay!

Great. Thank goodness I didn't waste the time to read the whole thing. I think I got to "Before I start", and stopped.

Your opinion of Intel is your opinion. Glad you got that off your chest, cause I would hate to see you mumbling around out loud as it eats you up inside, this evil corporation with the evil morals.

Blah, blah, blah...there. My opinion is done too.
January 5, 2007 6:04:49 PM

As long as intel puts out a great cpu im happy, and if they dont, ill just get an amd proc.
January 5, 2007 6:10:53 PM

A suggestion.

This entry doesnt violate THG TOS, but it is wacked none the less.

I propose we let it die by refraining from further replies
January 5, 2007 6:11:10 PM

Aren't you going to regale us with stories of how you are beaten all the time? Or how about when Intel made you sign away your rights to your children due to the phrase "Intel assumes the rights to any and all of said employees DNA and its subsequent derivatives..." that they snuck into your contract.

I have heard good things about Intel, however. I've heard that for Christmas they let you have an extra ounce of water and an extra spoonful of gruel.

Oh well, I guess I'll go visit AMD's headquarters, where the only problem is trying to keep all of the Bluebirds of Happiness from landing on your shoulders.


Edit: @Turpit - Sorry, couldn't resist. :tongue:
January 5, 2007 6:11:41 PM

Quote:
As long as intel puts out a great cpu im happy, and if they dont, ill just get an amd proc.


Yup, that's all that matters.
January 5, 2007 6:13:49 PM

Intel ate my ex-wife, so I will never buy AMD again.
January 5, 2007 6:14:42 PM

Quote:
Aren't you going to regale us with stories of how you are beaten all the time? Or how about when Intel made you sign away your rights to your children due to the phrase "Intel assumes the rights to any and all of said employees DNA and its subsequent derivatives..." that they snuck into your contract.

I have heard good things about Intel, however. I've heard that for Christmas they let you have an extra ounce of water and an extra spoonful of gruel.

Oh well, I guess I'll go visit AMD's headquarters, where the only problem is trying to keep all of the Bluebirds of Happiness from landing on your shoulders.


No, no, no...you have it wrong. I had to sign a contract that I was willing to allow whoever the CEO is, at the time of my first chld's birth, the right to name him/her. That's it. Nothing else.

Now, I have heard that a few lost souls had to sign the "blood for life" deal, but that was before I started there.
January 5, 2007 6:22:44 PM

Arec Bawdin.
January 5, 2007 7:11:20 PM

Better hope that Boutros Boutros-Ghali doesn't become CEO. :wink:
January 5, 2007 7:14:01 PM

Quote:
Arec Bawdin.

Words of wisdom from the 'Hoff, eh. :wink:
January 5, 2007 7:36:51 PM

Intel has no moral dilemma, Intel is not a person it's a corporation, it has a legal obligation to make money, as much money as possible.

how Intel doese this is irrelavent within or without of the boundaries of the law factoring in costs associated with possible fines or negative publicity... all are irrelavent so long as they maximise profit, what it sells is irrelavent as is how good the parts are, who it affects or how it behaves so long as it's maximising profit is irrelavent.

that is the first rule and it's actually a law, Intel as a corporation has a legal obligation to make as much money as possible regardless of the circumstances.
January 5, 2007 7:42:13 PM

Quote:
They need to drop the idea that consumers are idiots (plainly expressed in their advertising campaigns) and try to gain their lost respect. As a business they have lost those that are tech savy, and the tech savy influence, by word-of-mouth, those who aren't so knowledgeable. The positive cycle that personal opinion can create also works backwards and can spyral public opinion to dismal levels. I don't want to see Intel out of business, competition is good. I just want to see Intel run their business honestly and with good faith. Something they haven't been doing for a very long time.


Here's my problem with this dribble...the majority of the people Intel are marketing to, are, in 90% of the cases (in my opinion), technology idiots - so they dumb down the marketing to the largest market. I work with tons of doctors, lawyers, people who are brilliant in their own fields who just don't care. They want what performs best. Gramma doesn't care either. This is the base that they market to.

Tech savy individuals - the other 10% - Intel really doesn't care about in a marketing sense. We know what to use or what we'd like to use.

My question to you sir, is the same question I posed to BM - do you use Windows? If so then you are a hypocrite because Microsoft is *no* better.
January 5, 2007 7:42:35 PM

Hoff needs to change to someone else. Hoff is frightening. ... Hoff is so.. 80's.
January 5, 2007 8:22:48 PM

Quote:
Intel has no moral dilemma, Intel is not a person it's a corporation, it has a legal obligation to make money, as much money as possible.


Perhaps the question should be rephrased as: "Does Intel have morals?"

The answer? No, it just has a desire to make as much money as it can, so that the stockholders are happy with the returns and don't take action to fire that CEO's. Same with AMD and any other corporation.
January 5, 2007 8:28:45 PM

I have Intel stock and for the longest time, they sent me penny checks.... why send a 3 cent check when the stamp costs .30.
January 5, 2007 8:38:36 PM

Quote:
I have Intel stock and for the longest time, they sent me penny checks.... why send a 3 cent check when the stamp costs .30.


Because they want to impress you with how efficiently they are running the company? :roll:
January 5, 2007 8:38:49 PM

Quote:
:cry:  :cry:  :cry:  :cry:  :cry:  :cry: 

want some cheese with that whine? :twisted:

Its all relative,AMD lied to analysts and misled consumers into believing they were planning agressively enough to thwart intels assault.The consumer side saw a ton of pointless releases,from the IDF treatise on computing,which ammoubnted to nothing more than an admission of failure to compete;to the release of 65nm chips with increased latency and followed by the release of a lame reason about die size and disabled cache.

Point is the dollar is god in both camps.LAME MD just expected 90nm to remain competitive too long.and Intel shoved that notion so far up AMD's azz it spouted out through their tear ducts.


Vern, Im a bit confused, how do you really feel :wink:

Peace Bro
January 5, 2007 8:41:40 PM

On the outside, he has a core 2 duo system
on the inside, he is running the first (+) AMD processor (1500+?), and the lastest X2, Opti, and FX chips.
January 5, 2007 8:42:43 PM

Quote:
:cry:  :cry:  :cry:  :cry:  :cry:  :cry: 

want some cheese with that whine? :twisted:

Its all relative,AMD lied to analysts and misled consumers into believing they were planning agressively enough to thwart intels assault.The consumer side saw a ton of pointless releases,from the IDF treatise on computing,which ammoubnted to nothing more than an admission of failure to compete;to the release of 65nm chips with increased latency and followed by the release of a lame reason about die size and disabled cache.

Point is the dollar is god in both camps.LAME MD just expected 90nm to remain competitive too long.and Intel shoved that notion so far up AMD's azz it spouted out through their tear ducts.


Vern, Im a bit confused, how do you really feel :wink:

Peace Bro

:lol:  :lol:  :lol:  :lol:  :lol:  :lol:  :lol:  :lol: 

disgusted :twisted:

As a stockholder in AMD, make that VERY DISGUSTED!!@ :evil:  :evil: 
January 5, 2007 8:44:46 PM

Quote:
On the outside, he has a core 2 duo system
on the inside, he is running the first (+) AMD processor (1500+?), and the lastest X2, Opti, and FX chips.


who is the mole you have working for us? :twisted: I will find him :twisted: and i will mount a passively cooled prescott to his azz. :twisted:



8O ROLF :lol:  :lol:  :lol: 
January 5, 2007 8:46:42 PM

Quote:
On the outside, he has a core 2 duo system
on the inside, he is running the first (+) AMD processor (1500+?), and the lastest X2, Opti, and FX chips.


who is the mole you have working for us? :twisted: I will find him :twisted: and i will mount a passively cooled prescott to his azz. :twisted:

Overclocked as well, no doubt?
January 5, 2007 8:53:09 PM

ahahaha

As a stock holder in Intel... I would consider it a long term stock.... Both companies rise and fall and hard hardly day-tradeable.


Now, soap... thats a technology to get into quickly! Soon they are coming out with medicated soap applicators...


Example: wash your hands... cure the flu.
Wash your hands, cure a headache
wash your hands, cure cancer
wash your hands, have a boy!
wash your hands, improve your FPS by 10%

Ok I lied on the last one.
January 5, 2007 8:56:35 PM

Will they have any that will cure FUD if you wash someones mouth out with it?
January 5, 2007 9:01:01 PM

I heard they did, but BM purchased the patent.
January 5, 2007 9:05:41 PM

:lol:  :lol: 
January 5, 2007 10:00:01 PM

I say a bunch of words then got dizzy and passed out. I am sure it is a very nice post though. :x
January 5, 2007 10:08:51 PM

Quote:
I say a bunch of words then got dizzy and passed out. I am sure it is a very nice post though. :x


January 5, 2007 11:00:48 PM

4x4 = EE

RAMBUS and AGP are/were both very important technologies.

Which will be the first to make brain equivalent chips? That's the important question.
January 6, 2007 3:07:13 AM

I don't see how people can be so critical of my picture... I bet 90% of the people making fun of it loved Knight Rider back in the day.

And about the Arec Bawdwin comment... it was a Team America: World Police reference... people that blame corporations for the world's problems are so damned stupid... consumers are what feed the corporations. If Intel were truly evil, hopefully we'd all have enough sense to stop buying their products... ditto for Wal-Mart and a million other companies. Didn't anyone see the South Park episode dealing with Wal-Mart?!?

Ok, I'm rambling. I'll shut up now.
January 6, 2007 3:12:08 AM

Quote:
I don't see how people can be so critical of my picture... I bet 90% of the people making fun of it loved Knight Rider back in the day.

And about the Arec Bawdwin comment... it was a Team America: World Police reference... people that blame corporations for the world's problems are so damned stupid... consumers are what feed the corporations. If Intel were truly evil, hopefully we'd all have enough sense to stop buying their products... ditto for Wal-Mart and a million other companies. Didn't anyone see the South Park episode dealing with Wal-Mart?!?

Ok, I'm rambling. I'll shut up now.


SouthPark 1008, "Make love, not Warcraft" was far superior. IMO
January 6, 2007 3:15:13 AM

Yes, but the original poster seemed to be ranting about corporate America... and South Park did do an episode with a similar theme.
January 6, 2007 3:57:30 AM

You must have missed the fact that this post is 7 years old. I don't think the OP will see your reply. :wink:
January 6, 2007 4:15:48 AM

LOL.

Good catch! I didn't even notice the date.

Who's digging up these posts?!?

Color me fooled....

:oops: 
January 6, 2007 4:20:31 AM

I duno who is... but at least its a good post to dig up.
Or not....
Or maybe.....



oh well.... long live 3dfx.
January 6, 2007 4:24:28 AM

3dFX 4life!!!!

I still have my Voodoo II card somewhere around here....
January 6, 2007 1:53:04 PM

LUCKY ! I Wish I still had my old cards.... very disappointed
January 6, 2007 5:35:51 PM

Quote:
LOL.

Good catch! I didn't even notice the date.

Who's digging up these posts?!?

Color me fooled....

:oops: 


Look at the time stamp of the second post. It was YO KID37

Lively debate though.
January 6, 2007 7:01:25 PM

Quote:
LOL.

Good catch! I didn't even notice the date.

Who's digging up these posts?!?

Color me fooled....

:oops: 


Look at the time stamp of the second post. It was YO KID37

Lively debate though.

Dang him!

mpjesse pulled the last post in this forum a few days ago, stating that it just needed some TLC.

LOL
!