Tuesday, March 03, 2009

Intel: Recession may hit technological advancements!

It may seem ridiculous to think that the economic slowdown may be powerful enough to hold back technological evolution and advancements but, sadly, the current recession has done exactly that.
Intel which sells its products through vendors of various electronic products may not be under a direct influence of recession but the piling inventory at its clients factories may soon start showing up as delay in the coming hardware releases by Intel. It is believed that the popular vendors of computer goods have been pressing Intel to delay the release of its newer technologies as they have not been able to clear the huge inventory which has the older Intel chips inside them. With the new technology entering the market the vendors would be forced to compete with the standards of the changing market and this may put a greater pressure on the already crumbling electronics goods industry.
For Intel to survive the economic crunch, it may be necessary that they don't delay the next release too much as competitors may snatch the near-monopoly that Intel enjoys right now. On the other hand rolling out a new product would create a further slowdown for the electronic goods majors and smaller players (with reasonably smaller inventory issues) would be the biggest gainers.
Thanks to the model on which Michel Dell built his company, Dell should survive without much problems with its unique inventory control mechanism and a customer demand centric approach for placing orders with its vendors. Smaller players in the electronic chip making industry may be seeing this as a chance to challenge the Intel authority.
The biggest gainers would be the customers with bigger discounts and 'nicer' offers expected in the consumer electronic market.

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