INTEL Knows Best? A Major Marketing Mistake When Thomas Nicely, a mathematician at Lynchburg College in Virginia, first went public with the fact that Intel's new Pentium chip was defective Intel admitted to the fact that it had sold millions of defective chips, and had known about the defective chips for over four months. Intel said its reasoning for not going public was that most people would never encounter any problems with the chip. Intel said that a spreadsheet user doing random calculations would only have a problem every 27,000 years, therefore they saw no reason to replace all of the defective chips. ....

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