“The coming year for Apple Computer is full of questions, and many of them are connected one way or another with the switch to using microprocessors from Intel. How Apple will or won’t build around this or that Intel platform is likely to be answered when CEO Steve Jobs takes the stage at the annual Macworld conference on Jan. 10,” Arik Hesseldahl reports for BusinessWeek. “But to me, a more interesting question is one that goes straight to the heart of the relationship between Apple and its newest chip supplier. As Apple includes Intel’s chips inside its machines, will it also point to the Intel brand on the outside? In particular, will Apple place an Intel medallion on computers, or mention Intel in the ads for computers that house Intel chips? This would be a good moment to recall what at least one customer has called the ‘cocaine’ of the computer industry: Intel’s marketing subsidies — a program known as ‘Intel Inside,’ named for the ubiquitous logo, labels, and audio-visual cues that show up in the various print and electronic advertising efforts of PC makers that use Intel chips.”
“For every Intel chip a PC company buys, it gets some cash back, calculated as a percentage of its ad budget. For a company that ran a $7.5 billion profit on sales of $34.2 billion in its 2004 fiscal year, Intel can well afford to spread a little marketing cash around,” Hesseldahl writes. “Is Apple going to accept ‘Intel Inside’ money and all that goes with it?”
Hesseldahl doesn’t think Apple will slap Intel stickers on Mac cases or add Intel chimes to the end of Apple’s nonexistent Mac TV commercials, but they may still get Intel’s “Intel Inside” money. “While Intel’s name and its many brands are among the most recognizable in the world, the name doesn’t inspire the same degree of loyalty that Apple’s does,” Hesseldahl writes. “While millions know who Intel is and what a Pentium chip is, the names don’t necessarily make hearts skip a beat the way they do at the mention of the iPod, or the Mac… One of Intel’s big hopes in landing Apple as a customer is that some of Apple’s coolness and customer loyalty will rub off. Intel will no doubt get its share of the credit for the fruits of the alliance, perhaps a home-entertainment computer that makes previous Microsoft-led efforts in that arena look positively primitive. That will no doubt create positive buzz for Intel and help it shed at least some of the taint of being part of the ‘Wintel’ alliance with Microsoft. And that may be all the incentive Intel needs to cut Apple slack that it won’t give other PC makers.”
Full article here.
• The New iPod with Video. The ultimate music & video experience on the go. From $299. Free shipping.
• Connect iPod to your television set with the iPod AV Cable. Just $19.00.
• The New iMac G5. Built-in camera and remote control. From $1299. Free shipping.
• Apple USB Modem. Easily connect to the Internet using your dial-up service. $49.00.