Year-End Thoughts on Microsoft, Apple, Intel and Lenovo

Published 26 December 05 11:06 AM | LPH 
There is something that has just been nagging me about Apple and Intel (Nasdaq: INTC). Last week I spent some time with two of Intel's most visible partners and to say these folks were unhappy with Intel would be a gross understatement. When it comes to the company they are most frustrated with, the OEMs tend to switch between Microsoft (Nasdaq: MSFT). From my perspective, Intel clearly has the lead right now in terms of aggravation, and in a number of areas.

A main reason for this is that Intel tends to make decisions critical to the success or failure of the OEMs without adequately taking into account the needs of these companies. A few years ago it got so bad I was asked by one of them to try and form an unofficial organization of OEMs that could, almost like a union, coordinate efforts and make Intel bow to their needs. That never took off, thanks to Toshiba's infamous legal counsel. The point is, this problem is far from new.

Apple, on the other hand, is used to telling IBM and Motorola (NYSE: MOT) to jump and having these companies do so vigorously. One of the reasons Apple switched to Intel chips was that IBM was clearly not jumping high or fast enough. Apple also has a reputation for being one of the nastiest partners around, with its recently failed HP relationship as the latest example.

On both sides of this partnership you have companies that are bad at partnering, according to feedback from their partners. Adding to this are rules that force Intel to treat every partner the same, tying them to programs like Intel Inside, Centrino, and Viiv (which Apple probably won't participate in). Since these programs provide massive advertising subsidies, so massive that AMD (NYSE: AMD) is suing Intel for its alleged anti-competitive nature, the financial disparity between the companies like Dell (Nasdaq: DELL) who use these programs and subsidies, and Apple, who probably won't, shouldn't be significant.

Now toss in the OEMs' belief that Intel cut two sweetheart deals with Apple, one providing discounts without ties to Intel's brand programs and the other to get them the next generation of processors early. Add that these OEMs are watching with attorneys and AMD at the ready if they get proof that either of these situations are true and you have the ingredients for a really interesting year. I'd hate to be the person responsible for maintaining the Intel-Apple relationship. Whoever that is, my heartfelt prayers are with them this season.

Source: Technology News

by

Comments

No Comments
Anonymous comments are disabled