Replies to post #113460 on Intel Corp (INTC)

[spaarky]

People get confused with the horizontal vs. verticle models. Vertical success is instantaneous, but it's fragile, and requires success across all tiers of the model. Horizontal models are like slow moving hurricanes that need time to build momentum, but once they hit critical mass, can impact entire markets.

Well stated. Exhibit A: Android at 75% smartphone market share. Android's entry in the smartphone market was weak, but within a few years it has become the dominant platform. And during that time, thanks to healthy competition, Android devices+OS have gone from clunky and awkward to "best in class."

-=spaark=-

[drjohn]

History has shown that consumers prefer horizontal models, and that they result in the most innovation and choice. Intel has been investing in their model for several years now. The products just entering the market are proof points for what's in store, but nowhere near the pinnical of what is possible. These products will be used in devices that offer far more choice to the consumer. We have seen it before, many times. People here doubt that it can work, but we're about to see history repeat itself - again!

Great analysis, and I believe there is a lot of truth and helpful insights in this statement. I think Steve Jobs also understood the two models and was always trying to find new markets to apply the vertical model, hence ipod mp3 player, iphone smartphone, ipad.

[Tenchu]

Beamer, the difference between horizontal vs. vertical, IMO, boils down to quantity vs. quality.

It's hard to say whether consumers prefer horizontal vs. vertical models. Certainly if you just look at market share, the quantity solution will win out every single time, but from the standpoint of quality, the vertical model has its benefits and has been a proven profit-maker to those who can execute properly.

Tenchu

[smoothh20]

History has shown that consumers prefer horizontal models, and that they result in the most innovation and choice. Intel has been investing in their model for several years now. The products just entering the market are proof points for what's in store, but nowhere near the pinnical of what is possible. These products will be used in devices that offer far more choice to the consumer. We have seen it before, many times. People here doubt that it can work, but we're about to see history repeat itself - again!

This sounds a lot like a personal wish...

Smooth