Camp Marketing Consultancy
Power
Dimensions of Economic Freedom. Law Int l Express Int l Express e e
Understanding artificial acceleration - systematic concentration – targeted financial misappropriation
iCore 7/5/3/Celeron Mobile
Economic assessment on Intel Annual Quantity Envelope and International Data Corporation Intel Mobile Volume Statement
“A monopolistic company may be especially privileged by insisting on longer production runs without incurring the loss of large stocks. This can be done by the simple expedient of holding the customers to ransom and making them accommodate the necessary inventories. It is fortunate for the national economy that few companies are in a position to get away with this for it ties up unnecessary amounts of capital”.
Stanford Beer, University of Manchester; Decision & Control, 1966
Mike Bruzzone, Camp Marketing Consultancy, [email protected] FTC Submission 8/30/2012 Camp Marketing Consultancy – Arrandale iCore 7/5/3/Celeron Dual Core Mobile Tsunami against the ebb wipes out the industry and exhausts Intel É
188,630,123 Units $43,600,279,927 Revenue
Paid by $43.287 Billion in iCore 3 & unreported Xeon revenue? Pentium
See consumer monopoly recovery spreadsheet tally iCore 5 dated 8.27.12 for Arrandale Total Revenue economic assessment. & Quantity Wave Forms Overlap
iCore 7
Celeron
Revenue Contribution or ▲TR
Mike Bruzzone, Camp Marketing Consultancy, [email protected] FTC Submission 8/302012 Camp Marketing Consultancy – Arrandale iCore 7/5/3/Celeron Dual Core Mobile
Comparing Beer’s Patterns of Reverberation and Concentration
Q F U L A N O T W I T Y
Reverberation Pattern Resistance Pattern One Concentration Pattern Resistance Pattern 2
Time - Tsunami against the ebb wipes out the industry and exhausts Intel. - $43.287 Billion Xeon Unreported Revenue offsets $43.6 Billion in Arrandale Price < ATC. - Does monopolizing to give away one years revenue mean pending financial trouble? - Intel skips an entire process regime at 28 nanometers to monopolize 22 nm fabrication. - Technology enterprise is known to under report some revenues in reserve. - Where are Intel unreported revenue reserves stashed? - Is some of that stash being looted? - For what and by whom at the physics end of MOS scaling?
Mike Bruzzone, Camp Marketing Consultancy, [email protected] FTC Submission 9/3/2012 Camp Marketing Consultancy – Arrandale iCore 7/5/3/Celeron Dual Core Mobile
“The central fact of industrial economics is not profit but loss, not the expectation of ending up with a surplus its justification and the legitimacy of the claims to a share in it, but the inevitable and real risk of ending up with an impoverishing deficit and the need, the absolute need, to avoid this loss by providing against the risks”.
Peter Drucker, The New Society, 1950
How can Intel provide against the risks when executive management denies causes, conceals reality, frames the messenger, avoids remedies and refuses too error correct?
Mike Bruzzone, Camp Marketing Consultancy, [email protected] FTC Submission 9/3/2012 Camp Marketing Consultancy – Arrandale iCore 7/5/3/Celeron Mobile Cost & Split
$334 $517,028,242 Monopoly Price Overcharge iCore 7 Monopoly 5x $61.54 = $307.70 10.3%
Q1 P=MR=MC
ATC = $252 iCore 5 $240 34.6%
$225 iCore 3 5x Pentium 50.4% AMC = $182
AFC= $134 “What we call monopoly is business at the end of its journey. The concentration of wealth and the wiping out of the middle classes are other names for it”. - Henry Demarest Lloyd, Philosopher / Historian $98 Celeron 4.6%
MC Low. Mfg Cost? = $61.54
Mike Bruzzone, Camp Marketing Consultancy, [email protected] FTC Submission 8/30/2012 Camp Marketing Consultancy – Arrandale iCore 7/5/3/Celeron Mobile Full Run at 188,630,122 Units; AWP = $231.14 AMR = $49.79, AMC = $181.35 350 i7m 2.8 GHz, 4MB L3, 500-766 GPU, 35w, 9/10 i7lm 2.27 GHz, 4MB L3, 266-566 GPU, 25w, 9/10 MONOPOLY $43,600,279,925 Revenue i7m 2.67 GHz, 4MB L3, 500-766 GPU, 35w,1/10, I7lm 2.13 GHz, 4MB L3, 266-566 GPU, 25w, 1/10 Tied Charge Back $4,306,027,993 325 i7e 2.53 GHz, 4MB L3, 500-766 GPU, 35w, 9/10 i7um 1.33 GHz, 4MB L3, 66-500 GPU,18w, 5/10, i7um 1.47 GHz, 4MB L3, 166-500 GPU, 18w, 9/10 Monopoly Price Overcharge > $308 $517,028,242 i7e 2.0 GHz, 4MB L3, 266-566 GPU, 25w, 1/10 i7um 1.2 GHz, 4MB L3, 66-500 GPU, 18w, 1/10 Industrial financial theft < in Qtr MC $14,498,318 300 i7lm 2.0 GHz, 4 MB L3, 266-566 GPU, 25w, 1/10, i7ue 1.33 GHz, 4MB L3,166-500 GPU, 18w, 8/10 i7ue 1.07 GHz,4MB L3, 266-500 GPU, 18w, 1/10 Price < AFC $803,213,308 Areeda Turner Review < AVC $591,192,359 275 i7um 1.07 GHz, 4MB L3, 166-500 GPU, 18w, 1/10 ECONOMIC i5m 2.67 GHz, 3MB L3, 500-766 GPU, 35w, 9/10
i5m 2.53 GHz, 3MB L3, 500-766 GPU, 35w, 1/10 ATC 250 i4um 1.2 GHz, 3MB L3, 166-500 GPU, 18w, 1/10, i4um 1.33 GHz, 3 MB L3,166-500 GPU, 18w, 10/10, $252 i5um 1.2 GHz, 3MB L3, 166-500 GPU, 18w, 5/10, i5um 1.33 GHz, 3MB L3, 166-500 GPU, 18w, 9/10 COMPETITIVE i5um 1.07 GHz, 166-500 GPU, 18w, 1/10 i4m 2.27 GHz, 3MB L3, 500-766 GPU, 35w, 1/10, i4m 2.53 GHz, 3MB L3, 500-766 GPU, 35w, 9/10, i4M 2.67 GHz, 3MB L3, 566-766 GPU, 35w, 1/11 AWP $231 i5m 2.4 GHz, 3MB L3, 500-766 GPU, 35w, 1/10,$236 i5e 2.4 GHz, 3MB L3, 500-766 GPU, 35w, 1/10, I3 2.13 GHz, 3 MB L3, 500-667 GPU, 35w, 1/10, 225 i3m 2.27 GHz, 3 MB L3, 500-667 GPU, 35w, 1/10, i3m 2.4 GHz, 3MB L3, 500-667 GPU, 35w, 6/10, i3m 2.53 GHz, 3MB L3, 500-667 GPU, 35w, 9/10, i3m 2.67 GHz, 3 MB L3, 500-667 GPU, 35w, 1/11, i3um 1.2GHz, 3 MB L3, 166-500 GPU, 18w, 5/10, i3um 1.33 GHz, 3MB L3, 166-500 GPU, 18w, 10/10 iCore 7 MC Low i5m 2.4 GHz, 500-766 GPU, 35w, 6/10 200 AMC $182 175 i3e 2.13 GHz, 3MB L3, 500-677 GPU, 35w, 1/10 SHUT DOWN
iCore 5 MC Low 150 iCel 1.07 GHz, 2MB L3, 500-667 GPU, 18w, 5/10 & 8/10 iCore 3 MC Low AFC iCel 1.2 GHz, 2MB L3, 500-667 GPU, 18w, 1/11 $134 125
100 *P < AVC $118 iCel 1.86 GHz, 2MB L3, 500-667 GPU, 35w, 3/10, iCel 2.0 GHz, 2MB L3, 500-667 GPU, 35w, 9/10 75 iCore Celeron MC Low
50 Noteworthy Arrandale CPU fabricated at 32 nm includes companion graphics in chip set device integrated into the CPU package. Does companion chip fabricated on 25 depreciated 45 nm line come in CPU sales price nearly for free to the PC producer? Is 45 nm companion graphics chip manufactured at a fraction of Intel variable cost?
1 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 Note: Pentium Brand not shown here but included within iCore 3 total volume. Mike Bruzzone, Camp Marketing Consultancy, [email protected] FTC Submission 9/3/2012 Camp Marketing Consultancy – Arrandale iCore 7/5/3/Celeron Mobile Full Run
TOTAL MONOPOLIZATION OF A PRODUCT CATEGORY 350 6 6 0 L 640M 2.8 to 3.6 GHz M 2 2 7 640LM 2.13 to 2.93 GHz 620M 2.67 to 3.33 GHz\ 325 6 Speed Split on 1 0 E 6 2 660UM 2 5 MONOPOLY 0 640UM3 12 1.33 E 6 Broker Availability 6 300 2 6 6 4 0 2 0 0 680UM 0 U U L E E 1.47 M1 1 6 2 2 3 2 0 0 3 U E 6 2 275 0 ECONOMIC U M 1 0 7 560M + 580M 2.67 GHz ATC
430UM 470UM 540UM 250 1.2 GHz 1.33 GHz 1.2 560UM 470UM $252 540UM 560UM 540M 2.53 to 3.06 GHz 1.2 GHz 1.33 GHz 1.33 1.33
520UM Efficient Production 1.06 MONOPOLY COMPETITIVE AWP $231 225 4 520M 2.4 iCore 7 3 5 390M 480M 460M 3 0 4 to 2.93 330M 2.13 GHz 380M 370M M 2 2.67 2.67 2.53 2 5 MC Low 2 0 3 2.53 GHz 2.4 GHz 200 7 0 E 450M 2.4 GHz 0 M 2 2 AMC U 4 SHUT DOWN 2 $182 175 3 7 2 M 0 E SHUT DOWN 2 iCore 5 MC Low 150 1 2 3 1,603,186 < AFC 2 iCore 3 MC Low AFC Celeron 7 $134 125 1.06 GHz 1.20 GHz AVC < AFC $118 100 6,971,608 Units < AVC Celeron 75 1.86 GHz 2.00 GHz iCore Celeron MC Low < AVC
50 “Chimps must not fight the gorilla on its own turf; the system is rigged, the referee is bribed. Instead they must seek out some neutral venue where by exploiting their chimp freedoms, $25 namely the ability to focus and innovate within a local segment, they can stake out turf that is not yet committed to the gorilla”. Geoffrey Moore, Inside the Tornado, 1997
1 1M 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 Speed Split 1.07 GHz = 1%, 1.2 = .33%, 1.33 = 1%, 1.47 = .5%, 2.0 = 2%, 2.13 = 9%, 2.27 = 19%, 2.4 = 20%, 2.53 = 26%, 2.67 = 17%, 2.8 = 2% Mike Bruzzone, Camp Marketing Consultancy, [email protected] FTC Submission 9/3/2012 Camp Marketing Consultancy – Arrandale iCore 7/5/3/Celeron Dual Core Mobile
END OF GAME Intel Devastates the Commons iCore 7 Volume Product Grades within Quarters iCore 7 High Volume Product Speed Split
Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 1 2 3 4 5 6 7 8 9 10 11 12 13 1 2 3 4 5 6 7 8 SECOND Strike Intel Floods the Channel
iCore 5 Volume Product Grades within Quarters iCore 5 High Volume Product Speed Split
Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8
READ from Bottom to Top to from READ Bottom 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 1 2 3 4 5 6 7 8
FIRST Strike MID GAME Tragedy of the Commons iCore 3 Volume Product Grades within Quarters iCore 3 High Volume Product Speed Split
Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 1 2 3 4 5 6 7 8 1 2 3 4 5 6 7 8
Mike Bruzzone, Camp Marketing Consultancy, [email protected] FTC Submission 9/3/2012 The Art & Science of Camp Marketing #1 DISCOVERY #2 INNOVATION - #3 APPLICATION
x86 PC Industry Structure - 1992 - Natural Entry Barriers From Camp Marketing - Intel Play Book
Before Intel Monopolization x86 Cyrix entry points: Litigation IP & Product Launch Enabler Intel 3rd Party Hardware & Software Tools T Tools Top I I Sequence Core Logic N FABS OEM Stunning Sails E Intel mfg. cross license. N Design Tools Down Consumer Electronics OEMS F Core Logic F Intel C D BIOS / Chip Set Compatibility 1 PC & MB OEMs R Big OEMS R Messaging A A A H E Intel A Big End Customers S OEM L PC & MB OEMs S L T L T N Big End Customers Peripheral OEMs R L Top I R L O System Integrators U I V Peripheral OEMs U I 3 C Down C E L E System Integrators E OS & Network ISV T T Feedback Loops for Messaging R S 2a U S O OS & Network ISV U System Customers Applications ISVs R Y R Product Improvement E G Applications ISVs E 2b ISV Infrastructure Allies Y ISV Infrastructure Allies Education Education Government Government Nat’l Distribution & Sales Channels Nat’l Distribution & Sales Channels Distribution / Brokers 5 local Integrators, VARs, Hardware & Software Consultants C D Local Integrators, VARs, Hardware & Software Consultants Corporate IT , Pilot Projects, Sophisticated Users E Corporate IT , Pilot Projects, Sophisticated Users Retail Channel 4a H Nat’l & Local Industry Analysts LI Nat’l & Local Industry Analysts V Nat’l & Local Financial Analysts Nat’l & Local Financial Analysts Market frame A E Engineering & OEM Trade Press Engineering & OEM Trade Press P P E to set & hold E U R U Segment Specific Press Segment Specific Press B B D D L N Y L Business Editors & News Writers I position I Business Editors & News Writers I I S S H Major & Minor Nat’l PC & Consumer Products Press H T T Major & Minor Nat’l PC & Consumer Products Press E E 6 R N R Comm O U O S Local Business Press S Local Business Press Mutual Mutual dependent business system benefiting from Intel high value products. S R R Local PC Press & Broadcast Local PC Press & Broadcast E E S END CUSTOMERS S Mass Market Consumers R Business PC Buyers CUSTOMERS L Buyer Utility & Economic Benefit 4b Early Adopters Mass Market Consumers Innovators
Society has to find ways both of recognizing and fostering talent . . . genius #4 CONNECTION breaks the rules and thereby confronts the institutions with challenges which x86 PC Industry Structure - 1999 - Unnatural Entry Barriers may at first sight appear to constitute a danger to their very existence - Jewkes, Sawers, Stillerman - Sources of Invention, 1958
Development monopoly sustained P 1 C by forward taper in 4 out of 5 PC Int l INTEL Create M e 2 component markets. O N 3 I give a damn O Guards Intel first mover
INTEL BRUZZONE
P advantage. 3 APPLICATION
O FORWARD TAPER 5 L what happened . . . 4
Y 820 820 815 815 4 Excludes competitors and limits consumer choice. INTEL Create
BRUZZONE 2 INNOVATION INTEL’s B 3 INSIDE! C M WHEEL O OF PRICE CPU Surplus combinations juxtaposed to H O STABILITY “Intel Inside” dealing combination route T INTEL Create A T N Intel intra-platform PCs from primary L O OEMS through primarily print media E vehicles to consumers. N P BRUZZONE N O 1 DISCOVERY N E Bottleneck monopoly guards Intel sales 2 L V C channel. E Inte l “ what I want to know E R K Y INTEL Create T V I E L Excludes and suppresses competi-tion. C R A T L HORIZONTAL I is why it happened”. C BRUZZONE THE INTEL A Limits consumer choice. L 4 CONNECTION 1 KIERETSU HORIZONTAL Mass Market Consumers The Education of Henry Adams
Mike Bruzzone, Camp Marketing Consultancy, [email protected], 415/250-4652 FTC CDOJ Senate Intel 8/2000 The Art & Science of Camp Marketing
Economics will provide the catalyst to swing through absolute rest before 2006. In the end even Intel couldn’t compete against its surplus.
E N V I R
Camp O Research Marketing Methodology N Conclusions M Increased Environmental E Understanding Attributes N S T T If you don’t participate A 1998 R L U C in displacing the sur- T U plus with product better R A fit to use, you don’t L participate in the new computing paradigm. . . . battle for the Intel surplus.
S @ A Geopolitical economic war to displace the x86 surplus has T I U N just begun. An environment created from lawlessness, R F A I T N competitive battles are destined to be ruthless. I I O T N Y
Mike Bruzzone, Camp Marketing Consultancy, [email protected], 415/250-4652 NAAG Edition - 8/02 The Art & Science of Camp Marketing From Antitrust Enforcement by Howry & Simon, Antitrust Compliance Counsel to Intel Corporation.
U.S. Sentencing Guidelines:
Antitrust Compliance programs should be designed for prevention and not for fine reduction. Sentencing guides provide that an organization found guilty of an offense can, in certain circumstances, mitigate its sentence if it had in place at the time of the alleged wrongful conduct an “effective program to prevent and detect violations of law.” The provision however may be unavailable if a high level executive or individual with substantial authority participated in the offense.
Intel Pass or Fail
1) The organization must have established compliance standards and procedures to be followed by its employees and other agents that are reasonably capable of reducing the prospect of criminal conduct.
Specific to established standards; Pass Specific to Intel employees; Fail Specific to Intel agents; Fail
2) Specific individuals and high-level personnel of the organization must have assigned overall responsibility to oversee compliance with such standards and procedures.
Intel Corporate; Pass on assigned responsibility. Intel Corporate; Fail on implementation, monitoring, error correction. Intel Agents; Fail all of the above.
3) The organization must have used due care not to delegate substantial discretionary authority to individuals whom the organization knew or should have known through the exercise of due diligence, had a propensity to engage in illegal activities.
Intel Corporate & Agents: Fail; cross enterprise cross profession network multi crime; what due diligence?
Review by Mike Bruzzone, Camp Marketing Consultancy For Intel, DOJ & FTC - 8/98 The Art & Science of Camp Marketing From Government Antitrust Enforcement, continued
Intel Pass or Fail
4) The organization must have taken steps to communicate effectively its standards and procedures to all employees and other agents, e.g., by requiring participation in training programs or by disseminating publications that explain in a practical manner what is required.
Intel Corporate; Pass on training programs. Intel Corporate; Fail on administration, implementation, monitoring, error correction. Intel Agents; Fail all of the above.
5) The organization must have taken reasonable steps to achieve compliance with its standards, e.g., by utilizing monitoring and auditing systems reasonably designed to detect criminal conduct by its employees and other agents and by having in place and publicizing a reporting system whereby employees and other agents could report criminal conduct by others within the organization without fear or retribution.
Intel Corporate; Fail all of the above. What monitoring and auditing systems? Intel Agents; Fail all of the above.
6) The standards must have been consistently enforced through appropriate disciplinary mechanisms, including, as appropriate, discipline of individuals responsible for the failure to detect an offense. Adequate discipline of individuals responsible for an offense is a necessary component of enforcement; however, the form of discipline that will be appropriate will be case specific.
Specific to consistently enforced; Fail Specific to adequate disciplinary mechanisms, Fail Discipline of individuals responsible for failure to detect; Fail. Appropriate Discipline; Criminal Hearings subjecting some to fine, from 7 to 30 year to life jail terms, loss of citizenship for participating in, concealing, complicity in economic espionage against the United States.
Review . by Mike Bruzzone, Camp Marketing Consultancy For Intel, DOJ & FTC - 8/98 The Art & Science of Camp Marketing From Government Antitrust Enforcement, continued
Intel Pass or Fail
7) After an offense has been detected the organization must have taken all reasonable steps to respond appropriately to the offense and to prevent further similar offenses including any necessary modifications to its programs to prevent and detect violations of law.”
Intel Corporate: Fail Intel Agents & Attorneys; Fail
8) First company to disclose.
Intel did not disclose; Fail
9) Antitrust Division was not aware of the conspiracy before company came forward.
Government is aware that Intel did not come forward; Fail Targeted parties give first notice; Yes
10) Antitrust Division must not have received information about conspiracy from any other source at the time of Intel disclosure.
Government in receipt of complaints by 1st party witnesses to retaliation in 1996; Intel Corporate; Fail
11) Company must promptly report its illegal activity to the Division, and immediately terminate its illegal conduct.
Intel Corporate; Fail Intel Agents & Attorneys; Fail Illegal conduct has not stopped and retaliation continues.
Review by Mike Bruzzone, Camp Marketing Consultancy For Intel, DOJ & FTC - 8/98 Camp Marketing Consultancy – Arrandale iCore 7/5/3/Celeron Dual Core Mobile
“The concrete society of the West has to demand of the industrial enterprise that it fulfill that promise of status we call Justice which is expressed by the slogan of equal opportunities; and that it organize function according to the belief in the Dignity of Man as it is expressed in the responsible participation of citizenship.
The important question is whether it fulfills the promise of equal opportunities and the belief of citizenship sufficiently to be accepted by the individual as a functioning social order”.
Peter Drucker, The New Society, 1950
Mike Bruzzone, Camp Marketing Consultancy, [email protected] FTC Submission 9/3/2012 The Art & Science of Camp Marketing
Vindication on recognition for a job well done is a cure for many ills and injustices.
Mike Bruzzone, Camp Marketing Consultancy, [email protected], 415/250 4652 NAAG / Senate 4/02 The Art & Science of Camp Marketing
Preparedness is the charter of the day.
Domestic Consolidation Transnational Camps New Sufficient Vision to See
Eastern Block Revival Eastern Renaissance/ Asian Ramp Millennium Outside the Box & Make It. 1996 2000 2002 2005 2010 2015
Beyond the box thinking.
q4 ‘95
Move beyond the box they paint for you.
Mike Bruzzone, Camp Marketing Consultancy, [email protected], 415/250-4652 6/96 Camp Marketing Consulting Project Framework:
Move beyond the box they paint for you. Identification of Equitable Values To give intelligent, responsible, and capable direction Management by for sustainable business within industry for society. Management by Information P Objective As a prerequisite for planning that serves customers S @ and society as efficiently and effectively as possible. A Maintaining System T I Making Optimal Viability Understand technology and business possibilities to U N Decisions R F meet the needs of customers and society as cost A I effectively as possible. T N Management I I Management by With exemplar stewardship cognizant of social welfare. T by People O Techniques Y N By enlarging the capabilities of the operation; melding together people, process, design, fabrication and utility knowledge for competitive advantage. Developing Organizational Flexibility To assess equal opportunity for complimentary Integrated Attitudes Management by Structure participation; partnership, cost and reward sharing.
To recognize the obligation to investors; planning for an adequate economic return on their investment.
To address economic responsibility as a design and 101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101010101 process steward in the countries of industry operation.
To further the well being of the global electronics industry as an advocate of responsible, stable and sustainable growth models that make economic sense. MIKE BRUZZONE – Camp Marketing Consultancy
Kaizen culture, practitioner of Benkyou, no politics, get the job done. Specializing in operational research, market relations, segment management, product evangelism, planning & tactical implementation, competitor and cluster strategy, product commercialization.
Mike Bruzzone, Camp Marketing Consultancy, [email protected], 415/250-4652 SEMI ISS- 2006