Earlier this week Apple announced its quarterly profits for Q2; profits increased by 48 percent. Unexpectedly continued strong iPod sales combined with a 61 percent increase in sales of laptop computers. What the WaPo article doesn’t say, but I saw in other places, is that the power and operating system flexibility of the Intel dual core chip laptops fueled that 61 percent increase.
Sadly for Intel, though, their profits fell 57 percent relative to the same quarter last year. One reason for that is the competition with AMD in the chip market that I mentioned a few weeks ago. The Red Herring article linked above focuses on the importance of sales and marketing strategies, not price competition, as the way they can find success. It’s not just the technical capability of your chip, it’s how you sell it. I think that’s important. Recall that I noticed the AMD ads in the airport, but have taken no notice of any Intel marketing that might be out there (even if I’m not the target market).
This is the perennial gale of creative destruction in action, and it’s fascinating to watch. Well, it’s fascinating to me!