Apple vs. Intel

see: http://www.apple.com/hotnews/openiphoneletter/

versus:

To all Itanium customers:

I have received emails from a few of our handful of Itanium customers, and they are upset about Intel dropping the price of Itanium by $5000 two years after it went on sale. After reading every one of these emails, I have some observations and conclusions.

First, I am sure that we are making the correct decision to lower the price of the 12Mb Itanium from $5999 to $19.99, and that now is the right time to do it. Itanium is a breakthrough product, and we have the chance to 'go for it' this holiday season. Itanium is so far ahead of the competition, and now it will be affordable by even more customers. It benefits both Intel and every Itanium user to get as many new customers as possible in the Itanium 'tent'. We strongly believe the $19.99 price will help us do just that this holiday season.

Second, being in technology for 30+ years I can attest to the fact that the technology road is bumpy. There is always change and improvement, and there is always someone who bought a product before a particular cutoff date and misses the new price or the new operating system or the new whatever. This is life in the technology lane. If you always wait for the next price cut or to buy the new improved model, you'll never buy any technology product because there is always something better and less expensive on the horizon. The good news is that if you buy products from companies that support them well, like Intel tries to do, you will receive years of useful and satisfying service from them even as newer models are introduced.

Third, even though we are making the right decision to lower the price of Itanium, and even though the technology road is bumpy, we need to do a better job taking care of our early Itanium customers as we aggressively go after new ones with a lower price. Our early customers trusted us, and we must live up to that trust with our actions in moments like these.

Therefore, we have decided to offer every Itanium customer who purchased an Itanium from either Intel or its OEMs, and who is not receiving a rebate or any other consideration, a $1000 store credit towards the purchase of any product at an Intel Online Store. Details are still being worked out and will be posted on Intel's website next week. Stay tuned.

We want to do the right thing for our valued Itanium customers. We apologize for disappointing some of you, and we are doing our best to live up to your high expectations of Intel.

Paul Tortellini Intel CEO