Intel still tops the line of processors

Intel Technology India's Marketing Director Jayant Murty makes his presentation during the launch

NA: Could you update us on the Bangladesh market for Intel's processors or other products?

JM: The Bangladesh market in terms of new technology compared to anywhere in the world, takes hardly three or four weeks for a new product to be available in the local market. So, you see the products here are similar to any other in the world.

It's not that emerging markets adopt low technology and developed countries absorb high technology. Consumers in developing countries end up buying higher technology, because they don't want frequent upgrades.

NA: What would you say on the growth rate of our market?

JM: The market growth here is very slow in the sense that the installed base of computers in Bangladesh is very low; it's only half a million computers. But this figure is growing along with the substantial traction of most of our products -- processors and motherboards, is also growing. We are quite happy the way it's growing. Future progress and growth often does not link to what we do, it links the environment and the support of the workflow. You need a revolution and a movement in the entire environment that surrounds computing and communication.

NA: Can you give us the growth rate of the past one or two years?

JM: If there is half a million computers for 1.35 million people, the market has to grow. It's too early to worry about weather the growth will slow down. In Bangladesh, unfortunately there is no data available nor do we have our own research data, in terms of how large the market is, how large it can be and so on.

NA: What do you think are the major factors for the ICT development here?

JM: Every industry must play its part to make the momentum work. Secondly, the government also has a fairly strong role to play ensuring benefits of computing reach a large number of groups, such as educational institutions. When you make foundational investments like these, growth comes automatically. Immediately you know that technology makes a difference, people find the money to make a little investment.

Presently technology offers quite a few services -- Internet, VoIP and Telemedicine, at a cost. There is also a huge opportunity for distance learning. But we have to remember that all these need connectivity, which is a major need for ICT development in Bangladesh.

The government is a fairly critical segment of the county. I am sure the government's priority is to deliver ICT in education, provide connectivity to different parts of the country and they are already in the process. The only option is to adopt new technologies. The government is a potential segment of strength.

NA: What challenges do you face here? What are the solutions?

JM: Our challenges are Bangladesh's challenges, which is to have a good connectivity. Make the ICT in education a priority, build up a workforce and make sure that you have substantial skilled manpower to meet the challenges for the next 10 years, and high quality of computer based education.

I think the other part, which is very essential for Bangladesh is good quality of local language software. Not at an Operating System level but at content level.

I believe most of these things are very important for growth. Coming out here and saying: "I make a great processor" will not do much to growth.

NA: What obstacles do you face here?

JM: Our obstacle is the environment. If the environment enables, many more would be able use computers. It is very simple to do business here. There is no import duty. I complement the government for taking such a brave, bold and progressive move.

NA: What kind of policy do you maintain for pricing your products?

JM: Our attitude towards pricing has been same for the past 10 years. When we launch new technology, such as the launching of Pentium 4 with 1.5Ghz speed, and then gradually introducing 1.8, 2.0, 2.4, 2.8Ghz processors, the prices dropped for lower speeds. So we are always bringing the prices down. When the P4 was introduced to the market, it cost $600, but now the price has reduced to $150. Intel is one of the rare brands in the world where the price changes often.

NA: Are you suggesting that people wait for the price tumble?

JM: I don't think it is wise to wait for two years to buy a computer so that it becomes really cheap. Everyone knows that it's going to get cheaper, but no one waits. Because that's the way the industry is.

NA: How is AMD competing with Intel? How do you plan to stay ahead?

JM: Intel is a company who respects any company that is in the same business. We need to invest in our technology; we need to stay ahead of competition -- not only in terms of marketing and pricing but also in terms of technology. For example, from our $30 billion turnover in 2003, we spend $ 7.5 billion between research, development (R&D) and capital expenditure. We spend 25 per cent of our annual revenue because we want to have better technology in store. To me, managing competition is about staying ahead.

NA: Are the new Pentium 4's facing a market threat because of the latest AMD processors?

JM: I don't think so, because it's still the highest performing processor in the world. And then again, we have many types of Pentium 4 -- Pentium 4 with HT, Pentium 4 Extreme Edition. We have a good line-up of processors that deliver performances depending on what the user needs.

NA: How is the Xeon and Centrino market in Bangladesh?

JM: Wireless LAN and HotSpot market is booming. There are 100,000 HotSpots worldwide. Centrino comes with wireless capability, so the moment someone enters a HotSpot with a Centrino equipped Notebook, it accesses the network. It enhances mobility and wireless, the two main features of Notebooks. Bangladesh still does not have a wide range of notebook users, but the scene is changing gradually.

Response for the Xeon processors and Intel server boards are also very positive here. We have experienced an improved market since we introduced them last year.

NA: What steps, or series of steps, do you take when planning an advertising campaign?

JM: We do a lot of in-store merchandising and direct mail. Most of our campaigns are across all mediums. These mediums deliver our message to different levels. In India, a television commercial would be more effective than any other as there are 75 million television sets in India and it is not necessary to be educated to watch television. So our advertising policies vary on which country we are operating. It should also be cost effective. There are lots of scientific and strategic processes for figuring out which media we want to use and how much money we want to spend.