Perhaps smarting from last month's announcement of lower-than-expected sales, Intel
Like an explorer slashing his way through the jungle in search of Inca gold, Intel CEO Paul Otellini introduced a new fully featured, high-quality, low-cost desktop PC platform geared toward first-time computer users in Latin America. The CEO showed off a desktop computer along with executives from Telmex
The idea behind the company's "Discover the PC" initiative is to make the benefits of PC technology more broadly available to people in emerging economies. The initiative focuses on delivering products and technologies that are specifically designed to meet the unique needs of people in developing countries. And, of course, the PCs will be powered with Intel technology.
Initially, Intel plans to make the PCs available through government agencies and telecommunications companies in Mexico, Brazil, Egypt, Ghana, and Nigeria, with expansion to other countries later in the year. Intel's strategy is to hook up with government agencies and telecommunications partners that would provide Internet access while offering full-feature PCs at prices significantly lower than typical PCs.
Intel won't be making the computers. Instead, it's gathered an expedition force of ethnographers and engineering gurus to figure out what features should be added to computers to fit local needs. For example, the computers designed for rural India have a rugged frame and a removable filter because the hardware must be able to withstand hot, humid, and dusty weather. Intel believes that it can easily adapt these features to other emerging markets with similar needs.
Intel isn't the only chip maker inking deals with telecom carriers to promote computer sales in emerging markets. Advanced Micro Devices
What I really like about Intel's approach to entering these developing countries is that it's taking a sound marketing-based approach to each area by designing products especially for local consumers' needs. No arrogant, insensitive cookie-cutter approach here. Plus, Intel's aggressiveness in seeking out local governmental and business participation to introduce PCs packed with Intel chips should help the company open up new markets and grow its sales over the long run.
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Fool contributor David Compton owns none of the stocks mentioned in the article. The Motley Fool has a disclosure policy.
