Intel and Anonymity
A laptop computer contains about 1,800 average components, but only a brand awareness barns so typical consumer, the chip made by Intel.
Over the years, Intel has used aggressive marketing programs and catchy to help elevate its position in the computing market. This label has served Intel well, allowing you to send money for their products, that the power of the vast majority of PCs. The giant Intel was evident on Tuesday, the company reported better than expected on strong income growth.
But today, Intel is moving into a new business – putting your chips in products like televisions and other consumer electronics. In these areas, called “Intel Inside” sticker found on many PCs is often absent, as it seems out of place in the anchoring devices elegant lounges. And Intel’s plans for expansion include an unknown level of anonymity.
“Our customers are really trying to deliver the industrial designs that are beautiful and elegant,” said Jim Nucci, brand manager for Intel. “We will not be an upset.”
With the development of strong sales of personal computers in the last quarter and a cautious optimism about the next quarter, Intel reported a 18 percent increase in income in the third quarter, to $ 11.1 million for the year above. Intel’s net income rose to $ 3 billion, or 52 cents per share, above the 50 cents expected by analysts surveyed by Thomson Reuters. The company’s shares, which rose 1 percent during the regular session, rose another 1 percent to $ 19.97 in after-hours market.
“We had record revenue,” said Stacy J. Smith, Intel’s chief financial officer, in an interview. “It was a very good quarter.”
More than two years ago, Intel unveiled a new type of low-power Atom chip. Intel expects the product is taken off to growing areas such as smart phones, Web-ready TVs and set-top-boxes.
The company’s growth plans depend on success in this type of device, and the release flashy Atom brand reflects the noble aspirations of Intel.
A lot of rivals such as chip makers Broadcom and Freescale are working hard in relative obscurity as the chips that go into household objects and consumer electronics devices. These companies tend to allow device manufacturers to enjoy the spotlight and spend little on building its own consumer brand.
Intel, by contrast, has established one of the best known brands on the planet. A recent survey by Interbrand, a brand consulting firm, since Intel as the seventh best global brand, just behind companies like Coca-Cola and McDonald’s. Intel brand ranked higher than most of its customers, including Apple, Hewlett-Packard and Dell, and superior to Nike and Disney. And there is another company that makes computer components only appears in the Interbrand list of the top 100 brands.
“Intel has benefited from a unique time and place through the incredible rise of the PC,” said Regis McKenna, a veteran Silicon Valley marketing and strategy expert. “He was able to get your name out there and kind of drive the market and took advantage of that.”
But in recent weeks, a series of products based on Intel have come that make little mention of the presence of the company. Sony, for example, has just started his defense of WebTV, a television bright, flat screen with just a white logo Sony amid a sea of black. Sony’s Web site showing the new TV first points to the ability of all to run the software from Google and buried a mention of Intel’s chip at the bottom of the page.
Similarly, Cisco has just released its Umi video conference system that allows consumers to make high quality calls through their televisions. An Intel-based set-top-box handles the hard work of processing video data. In promoting the new system, Cisco’s executives not to mention Intel’s hand.
Such behavior is unheard of in the PC market, where Intel logo appears on products and advertisements from companies like HP and Dell. Intel offers lavish co-marketing are well known in the PC business and have been sitting in the middle of the antitrust lawsuits against the company. Intel has been accused of using co-marketing deals and discounts for customers to switch to rival chips.
When it comes to TVs, Intel has launched an extensive advertising campaign highlighting his role behind the scenes in a series of products, including equipment from Sony, Google and Boxee. Intel ads talk about the merits of “intelligent” personalized television powered by a connection to the Internet.
“We believe that, in fact, to be a way to make a big impact on consumers,” said Mr. Nucci. “We have given permission to start a new set of eyes as they began to move into these new spaces instead of borrowing from the past.”
Logitech has also made a device running software from Google TV, and has chosen to record the name of Atom and the Intel logo on the top of the product.
“Intel is synonymous with quality and performance,” said Eric Kintz, vice president of Logitech. “It’s a bit early to say whether it will be well received by consumers, but I think there is any additional value.”
Mr. Kintz said the set-top boxes to reach the market look like full-fledged computers in the amount of work they handle and the software they use. Such features play to the strengths of Intel’s fastest chip manufacturing and its reputation among consumers and software developers, Mr. Kintz said.
The surge in sales of the company’s chips in the set-top boxes and seems a good omen for the consumption aspirations Intel. The company sold one million sheets for smart TVs last quarter, and its only major loss was excluded from Apple TV.
If you can string together Intel enough of these agreements and to establish its technological dominance in the market, may well be able to extend its brand once again, according to marketing experts.
“Some brands have permission to do things, and Intel has the permission to have this discussion with consumers,” said Peter Sealey, former marketing officer of Coca-Cola. “It’s just a matter of time until they are off and running here.”
Preparing for the 3.0 GHz, Web-ready toaster, Intel Inside.