Intel has promised it will help its vendor and channel partners to manage their stock positions better, to avoid the problems that have plagued both them and it this year.
Sean Maloney, vice president of the sales and marketing group at Intel, told an analysts? meeting last week it will offer Web-based tools to help OEMs and its channel partners "micromanage" their stock position.
And despite the channel being squeezed by both retail and direct sales, he vowed Intel would help them to continue to value add its architecture.
Maloney also disclosed that Intel is gaining market share in its network products business, overtaking 3Com on 10/100 Ethernet connections in Q3 of this year.
This could interest investigators at the Federal Trade Commission (FTC), who have already widened the scope of the case scheduled to begin in February next year.
The tools to manage stock were already in pilot for 11 OEMs in 28 locations across the world, said Maloney, with some customers claiming stock reductions of 30 per cent on many products.
But Intel's share in the retail channel needed to improve, Maloney admitted. Its share has been eroded by AMD and Cyrix, observers noted.
Maloney showed a graph demonstrating that the dealer channel was being squeezed by both direct and retail sales but maintained Intel was committed to the channel, with 50,000 companies involved in its channel schemes worldwide.
He said that the Internet was the number one reason for buying a PC, quoting IDC figures. There are currently 200 million Internet users worldwide, Intel thinks.
Intel's strategy for the Internet was to provide architecture which will run all applications on a variety of different operating systems, said Maloney.
Maloney re-iterated that business in the second half of this year was better for Intel, with the Internet being the prime driving force.
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