November 23, 2010

System Builders Preparing For Intel's Sandy Bridge Processor

That lack of specificity is tempering many system builders' optimism. "I keep waiting for someone to show me what this is going to do to me," Todd Swank, vice president of marketing at Burnsville, Minn.-based system builder Nor-Tech " I want to know what specifically is going to be substantially different to make this such an exciting launch. It consumes less power and has less latency, I understand that, but as far as performance what is it going to enable exactly? What is so revolutionary about it?"

"The more integrated the products become, the less value-add we can manufacture in the U.S. Because everything is on the CPU, the more Original Design Manufacturers will take over," he said. "The channel has survived by reselling tier 1 notebooks. Now with the transition to netbooks, very few in the US are making their system themselves, they're making it overseas."

"It's getting more difficult for system builders to differentiate themselves with the actual product from the tier 1 ODM. From that perspective as a system builder it’s a concern that it will take away that revenue stream," Swank added. "From an overall technology perspective, it’s a very exciting product launch, with opportunities for new revenue streams."

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