Overseas Impact

By eweek  |  Posted 2003-09-18 Print this article Print

Intel has said that the growth of markets in Asia and Eastern Europe will impact what it builds, what it sells and at what price. Can you explain this? The influence is occurring pretty much at every level, as you can imagine. What it is is that I just have more people there. I have more salespeople, I have more marketing people. Theyre in more factories, just being close to the local marketplace. With the products, were increasingly taking into account the issues of Asia. Some of those might be the standard issues there—802.11, is it the same in Asia as its going to be in other parts of the world? … Spectrum allocation might be different in other parts of the world, so you just have to start comprehending a much more global set of considerations as you go into communications and as you focus on Asia.
We have [people] that were putting on the ground to understand the differences in how computers are utilized. We have this very, very naïve look from the U.S. that [computers sold in Asia] are just cheaper. And that is not at all the case. In many cases they want superior technology. This is an asset that they might be buying. A PC in China is a family asset that is an investment in the modernization, the education and the future success of that family. As such, youll see uncles and aunts and grandparents pooling their money to go buy a PC. They dont want low-end, they want a good product. As such, we have great Pentium and Pentium 4 sales in China.
Its very counterintuitive, but they do look at things very differently. When you look at a computer in China, they turn it off and cover it up when theyre done. … Thats how theyre culturally comfortable with keeping that asset safe and secure. There are language issues and social issues in these different marketplaces, so we have to consider those much more in how we think about and design our products. So its really affecting us in how we run our company to how we sell our products as well as how we design and look at them for the future. How does that manifest itself in what customers in the U.S. see? For the most part, weve been able to make those differences transparent to what somebody would see here. In some cases, well try to bring technology in the U.S. more quickly, such as cell phones. I was always bothered that I could go to Japan and get a 6-ounce cell phone with a beautiful LCD display, and Id come home and use my little dinky black-and-white display that was twice the weight. In other cases its been accelerating some of the things that weve tried to do overseas so we have the best of both worlds. In the consumer electronic sense, much of that innovation has and continues to be done out of Asia, and its largely … bringing that back into the U.S. When we think about things like the digital home, we see that as really a bridge between the best of the PC and IT industry and the best of the consumer electronics industry. Next page: Shrinking the manufacturing process.


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