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Pentium Flaw

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Intel greatest mistake was the so-called “Pentium Flaw,” in which an obscure segment among the Pentium CPU’s 3.1 million transistors performed division incorrectly. In 1994 American mathematician Thomas Nicely was using a personal computer equipped with the then new Pentium chip from the Intel Corporation when he discovered a flaw in the chip that was producing inconsistent results. Intel isolated their flaw, so their solution was to keep the information within the company and not disclose the information to the public. Despite of the fact that the flaw did not affect all microprocessors, it actually only affected a very small number of customers, Intel should have openly acknowledged the problem. Later, after no responses Dr. Nicely answered back by on the internet which caused an uproar and everyone was informed quickly. This when Intel pronounce that there is a problem and that they would replace any of the malfunctioning and damage chips. Intel had to put aside $500,000,000 of the 1994 revenue just to be capable of replacing the processor that where bad. Nonetheless, if Intel had willingly acknowledge and informed the customers and businesses partners about the issue, it most likely would have saved them not only money but also their reputation between the company and their existing clients. Needless to say, their decision resulted in some very unhappy customers. If this same problem would have happen these days, the CPU Company would have collapse before it would have started. Also reflecting that Intel decided not to inform their customers or partners of the problem and did not give a solution for the problem right away. If that were to happen today, many customers and business partners would choose to take their business elsewhere and the business would nose dive to failure.

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