Intel is one of the largest multinational corporations and has its headquarters in Santa Clara, California. Its core business is manufacturing semiconductor chips that are used worldwide by computer and other device manufacturers. It is the single largest manufacturer of these chips and is also credited with inventing the first microprocessor that goes into computers. Intel is the shorter version of the original name Integrated Electronics and the brand Intel was established after the name was registered. Starting off with the manufacture of integrated circuits for RAM or random access memory and shift register memory, it graduated to the more sophisticated DRAM or SRAM, and read only memory or ROM.
This cash rich blue-chip company listed in NASDAQ is now eying the smartphone market. Not without reason too, after all what goes into a smartphone was, and is being supplied by Intel to most smartphone manufacturers. The symbol ‘Intel inside’ is recognized the world over and now Intel would like to capitalize on that and get into the smartphone business. They don’t seem to be content just supplying the chips and vital components to other smartphone manufacturers. The game plan is to make Intel smartphones and tablets in any store. The first step in this direction was to bring to USA the phone campaign that was launched in UK and other parts of the world. The Intel logo is prominently displayed on branded phones.
There has to be concurrence from the smartphone manufacturers to agree to let the Intel logo be displayed. However, there is no need for them to comply to this if they do not wish to. Although Intel is the largest chip manufacturer, there are others like Qualcomm and Nvidia. In case Intel insists and tries to make it mandatory for the smartphone manufacturers to agree to allow the logo to be displayed, Intel could be inviting competition from Qualcomm and Nvidia who could be prepared to supply the vital components without insisting on brand sharing.
Take for instance Google’s Motorola Mobility that recently launched Razr i in the market. Though Google may have entered into an agreement with Intel for sourcing the chips that go into the smartphones, they can always try to find a way around that and insist on not wanting to display Intel’s logo. Intel is undoubtedly the market leader in the chip industry, however, they are not monopolists and can easily be dislodged by the rivals waiting for such opportunities.
Another theory is that when Intel’s logo is displayed too prominently, the consumers who are brand conscious may be mislead and could easily misread a brand that they are used to. This could lead to a dip in the sales of a particular brand of smartphone, which does not augur well for the component supplier and the brand of smartphone as well. You cannot imagine a situation, where to help promote a brand image of a component supplier, the company would be willing to lose business and brand image as well.
On the other hand, secondary manufacturers like Qualcomm and Nvidia have been aggressively advertising and getting a firm footing in the market. The sales of the both the companies are rising steadily. Various new marketing techniques are being tried out by Nvidia by going to the public directly and interacting face to face. The industry waits with bated breath to learn more about the outcome of Intel’s latest forays.
This is a guest post by Sharon Thomas of thecornersuite.com, a site that offers savings and current information on dish network internet, as well as dish.com services.
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