Wednesday 8 June 2005

Details Emerge From Apple-Intel Deal
Intel Breaks From Tradition, Must Promo 'Apple Outside'

With the announcement earlier this week, after more than a decade with I.B.M., Apple Computer is shifting, beginning in 2007, to using Intel microprocessors, a move that is sending shockwaves through the Apple loyalists.

Both Apple and Intel shares moved down slightly on Wall Street Monday, with Apple down 32-cents and Intel 16-cents down

And now, details are emerging of the deal.

One industry source has told The Garlic that Intel is required by the terms of the deal to run a promotional campaign of 'Apple Outside'.

Apple will not be required to promote Intel beyond standard elements, such as press releases, website and User Manuals.

"It was a deal breaker for Jobs. He knows his market and he's playing to the base, the die-hard Apple-users".

For Paul Otellini, Intel's chief executive, it was gut-check time. Traditionally, Intel has required its' partners, third-party developers and OEM's to run 'Intel Inside' promo's and campaign, almost as a seal-of-approval.

"It's a hard pill to swallow for Intel"

Reports indicate the 'Apple Outside' campaign will feature Apple products prominently and will point people to either Apple.com or iTunes.com

The Apple base is extremely nervous with this shift, as it is known that Intel doesn't have a PowerPC processor as strong as I.B.M.'s. Job's reportedly became concerned that I.B.M. wasn't producing a larger variety of the PowerPC processors, namely due to the low-volume profit of Apple's small market share.

Intel, on the other hand, with taking away the Apple business, now holds over 80% of the processor market.

'Apple Outside' promotions and media should start running by the end of this year