Business is a game of trade offs!
In 1980, Intel's Israeli team designed the 8088 chip that could flip 5 million times per second (4.77Mhz) that was small enough to fit into personal computers.
IBM chose this chip for its first Personal Computer
And this was BREAKTHROUGH for Intel!
By the 2000s chips had gotten really fast after following Moore's law of halving for two decades
The speed doubled and the size halved every 18-24 months.
At this time power requirements came into the mix and cooling the chips became an issue
Intel's Israeli team was saddled with the responsibility of solving this issue!
Note: A better chip was solely ranked by the speed at this time, users and the stock market generally look forward to a faster chip to rate the chip and the company respectively.
Faster clock speed: BUY; slower clock speed; SELL
This singular ideology caused a lot of resistance from the top management at Intel to pass The new proposed redesign and the proponents from Israel had to shuttle Tel Aviv and California like they were present in both cities in a bid to convince the executives at the Santa Clara Headquarters
After much persistence, they were given a shot
In MARCH 2003, the team released the CENTRINO CHIP for laptops. The clock speed was about half of the reigning 2.8GHz Pentium chips for desktops - it gave laptop users the portability and speed
This switch was the RIGHT TURN and REQUIRED TRADE-OFF both for INTEL and the rest of the world!!
Subsequently, the CENTRINO CHIP was a runaway hit. It anchored 13% of intel's sales '03 -'05.
Despite initial success, Intel's profits plunged 42% in 2006. That year, the bright spot came and Intel unveiled the CORE 2 DUO chips that utilized dual-core processing to speed up the chips even further.
Intel's stock that was down 19% over the whole year jumped 16% after the July announcement.
Intel released 40 new processors over a 100 day period - all based on the Israeli team's new design!
TRADE-OFFS are an integral part of business decisions
Learn how to make the best trade-offs on click!