'Intel Inside' Logo Stickers Absent from New Apple iMacs

SAN JOSE, Calif. — When Apple Inc. unveiled its newest iMac computers last week, something was missing.

For more than a decade, the swirly blue "Intel Inside" stickers have appeared on just about every computer ever made that contains an Intel processor, becoming as ubiquitous as Dole or Chiquita stickers on bananas.

But even though Apple bragged last year about adopting Intel Corp. chips, and even though Intel would gladly welcome Apple to its program that gives PC makers millions in marketing money to display the Intel logo on computers, boxes and ads, Apple has respectfully declined.

"Don't get me wrong, we love working with Intel," Apple CEO Steve Jobs said last week. "It's just that everybody knows we're using Intel processors, so I think putting a lot of stickers on the box is just redundant. We'd rather tell them about the product that's inside the box."

Intel executives say the "Intel Inside" campaign is as strong as ever. But Apple's refusal to join the program isn't the only crack in one of history's most successful marketing campaigns.

Many PC makers now offer machines with processors from other manufacturers — notably Intel rival Advanced Micro Devices Inc. — and that is starting to make "Intel Inside" a little harder to find.

In addition, those PC makers are increasingly emphasizing features like style or color and de-emphasizing specs like processor power — meaning they're often de-emphasizing Intel too.

For instance, while recent print ads from Dell Inc., Hewlett-Packard Co. and Lenovo still contain plenty of Intel references, the "Intel Inside" logo is absent from ads for some of those companies' PCs, even ones that do contain Intel chips.

Dell spokesman Bob Kaufman said Intel logos are still prominent throughout Dell's advertising and marketing materials. But, he added, the Round Rock, Texas-based computer maker has revamped its marketing lately to emphasize its new goal of trying to "drive personalization, style and design to new heights."

"What we're trying to communicate to customers isn't necessarily which processor they choose, it's about choosing the right processor for the function they're trying to perform," Kaufman said.

Henri Richard, executive vice president at Intel rival AMD Inc., characterized the subtle shift by PC makers as a watershed event.

Computer makers "are breaking free," said Richard. "OEMs are finally being re-empowered to talk about their own brand."

Even though AMD also pays computer makers to use its logo, Richard and other AMD executives are trumpeting Apple's refusal to participate in the "Intel Inside" program. In recent months, AMD has stepped up its efforts to convince other PC company executives to follow suit.

"I have constant conversations with them, saying, 'Why don't you try to sell your systems without any logos on them?' " Richard said. "My instinct is that it won't make any difference."

Despite AMD's lobbying, so far no major computer maker has dropped out of the "Intel Inside" program, said John Galvin, who directs the program for Intel.

"We look at the program every year ... and we believe the usage is still very strong," he said.

If some manufacturers are using the Intel logo less, he said, "it could be they have no money left" from the marketing funds they get from Intel. "They're spending every dollar they accrue with me," Galvin said. He declined to give specifics about how the funds set aside for the marketing program are split between participating partners.

Intel launched the "Intel Inside" program in 1991 in an attempt to make microprocessors more important to everyday computer users.

In the program's first year, more than 300 PC manufacturers signed up for the program, happy to plug Intel in exchange for potentially millions in newfound marketing dollars.

Today, about 3,000 PC makers of all sizes and shapes participate in the program, Galvin said, a number that's been constant for at least several years.

Atlanta marketing consultant Al Ries, who specializes in brand building, said the "Intel Inside" campaign may be less effective than it once was, but it's still one of the most successful campaigns ever.

"One of the basic principles of marketing is: Never change a strategy that's working," Ries said in an e-mail interview.

Even though "Intel Inside" may not be everywhere in the future, most computer makers will likely continue promoting it as long as they keep getting money to do it, said Jupiter Research analyst Michael Gartenberg.

"In an industry where profit margins are razor-thin, if you can get a couple million dollars just for putting a sticker on a machine ... that's a no-brainer," Gartenberg said.

Tim Bajarin, president of technology consulting company Creative Strategies Inc., agreed and said Apple's refusal to join the "Intel Inside" program isn't surprising.

"Apple is a company that always marches to its own drumbeat," he said.

But Apple aside, "any time a (PC maker) can get a price break or other compensation, they're enticed to do so," Bajarin said.