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- <text id=94TT1793>
- <title>
- Dec. 26, 1994: Business:When the Chips Are Down
- </title>
- <history>
- TIME--The Weekly Newsmagazine--1994
- Dec. 26, 1994 Man of the Year:Pope John Paul II
- </history>
- <article>
- <source>Time Magazine</source>
- <hdr>
- BUSINESS, Page 126
- When the Chips Are Down
- </hdr>
- <body>
- <p> IBM puts Intel on the spot by refusing to ship any more PCs
- with flawed Pentium microprocessors
- </p>
- <p>By Janice Castro--Reported by David S. Jackson/San Francisco and Jane Van Tassel/New
- York
- </p>
- <p> Word of the flaw in Intel's Pentium chip, the powerful new brain
- in 4 million personal computers sold this year, began circulating
- before Thanksgiving. But the manufacturing problem was nothing
- compared with the flaw in Intel's understanding of how to keep
- good customer relations. Having kept the defect secret for months,
- Intel blithely dismissed the criticism at first, maintaining
- that the imperfection in the Pentium would affect only highly
- complex calculations. Most folks, said Intel, would encounter
- an inaccurate answer just once in 27,000 years; therefore, the
- errant chips would be replaced only if computer owners could
- demonstrate that they really needed an extra margin of accuracy.
- </p>
- <p> Intel had reason to be high-handed: 80% of personal computers
- used in the world have "Intel inside." But the company didn't
- count on being blindsided by another behemoth. Last week IBM,
- the world's largest computer maker and one of Intel's biggest
- customers, announced that it was halting shipments of all its
- products containing the Pentium (about half the personal computers
- it is at present sending out to stores). Brandishing its own
- laboratory research, IBM contended that the chip's mistakes
- were far more frequent than Intel had let on. Said G. Richard
- Thoman, an IBM senior vice president: "We believe no one should
- have to wonder about the integrity of data calculated on IBM
- PCs." Some industry observers suggested that IBM may have had
- ulterior motives for knocking Intel's quality, since Big Blue
- will begin selling the competing Power PC microprocessor next
- spring, but the computer maker insisted it was only trying to
- protect its customers.
- </p>
- <p> Just who needed protection was not clear. The Pentium's imperfection
- affects division problems involving numbers with many digits.
- For example, if 4,195,835 is divided by 3,145,727 and then multiplied
- by 3,145,727, the result should be the original number: 4,195,835.
- It doesn't even take a computer to figure that out. But machines
- with the flawed Pentium come up with a different answer: 4,195,579.
- Although most users might never encounter such a mistake, businesses
- running thousands of computations a day could possibly run into
- trouble. The flaw, some experts contend, might affect the accuracy
- of corporate balance sheets or the calculations that banks make
- to pay interest to depositors.
- </p>
- <p> While researchers at Intel and IBM debated the seriousness of
- the problem, customers who had bought--or planned to buy--Pentium-based computers were confused and often angry. Intel
- admitted last week that tens of thousands of customers have
- called about the problem. Easing its earlier hard line, the
- company agreed to replace a few thousand of the chips for buyers
- who requested a switch, and it will soon begin selling a corrected
- model. But to Robert Sombric, the data-processing manager for
- the Portsmouth, New Hampshire, government, Intel's decision
- to go on selling the flawed chips for months was inexcusable.
- Said he: "I treat the city's money just as if it were my own.
- And I'm telling you: I wouldn't buy one of these things right
- now, until we really know the truth about it." Repairing Pentium's
- flaw may be much easier than fixing the damage done to Intel's
- image.
- </p>
- <p>JOKE ON THE INTERNET
- </p>
- <p> Top 10 reasons to buy a Pentium machine
- </p>
- <list>
- 10. Your current computer is too accurate.
- 9. You want to get into the Guinness Book as "owner of the most expensive paperweight."
- 8. Math errors add zest to life.
- 7. You need an alibi for the IRS.
- 6. You want to see what all the fuss is about.
- 5. You've always wondered what it would be like to be a plaintiff.
- 4. The "Intel Inside" logo matches your decor perfectly.
- 3. You no longer have to worry about CPU overheating.
- 2. You got a great deal from the Jet Propulsion Laboratory.
- </list>
- <p>
- <list>
- And the No. 1 reason to buy a Pentium machine:
- 1. It'll probably work.
- </list>
- </p>
- </body>
- </article>
- </text>
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