Gateway Uses Latest Intel Chip in New PC

High-end system can be configured as either as desktop or a workstation.

Ben Ames, IDG News Service

Gateway will use the new "Conroe"
Core 2 Duo chip
from Intel to power a PC that users can configure as either a high-end desktop 
or a workstation, the company said today.

Gateway will pitch its standard E-6610 PC to business customers and educational 
institutions, or add faster disks and reach a different market of architects
and engineers.

That flexibility will allow Gateway to reach the 66 percent of the 
Windows-based, personal workstation market that uses single-processor machines, 
said
Marc DeMars, director of desktop products for Gateway, of Irvine, California.

Gateway does not build multiprocessor workstations, but has found a market 
niche by selling Intel's high-end 975X chip set for both workstation and desktop
use, DeMars said.

That chip set is a requirement for running the Core 2 Duo chip, and provides a 
2-percent or 3-percent performance jump over the previous 955X model, he
said. Gateway plans to add more products in this area when Intel releases the 
professional version of its mid-range Q965 chip set in September.

The desktop model of the E-6610 offers 80 to 500GB of storage on SATA hard 
drives and an ATI graphics card, while the workstation model offers a 
fast-spinning
73GB SCSI hard drive and an NVidia graphics card.

Both versions use Microsoft's Windows XP OS and Intel's Core 2 Duo E6300 
processor.

Intel launched the new chip July 27 as a replacement for its Pentium D chips. 
Using dual-core design and 65-nanometer architecture, it performs 40 percent
faster and draws 40 percent less power, according to Intel. In PC World's
exclusive tests ,
Conroe processors performed exceptionally well.

Gateway is shipping the E-6610 desktop now for $1199 and the workstation 
version for $1777.

As it prepares to report its quarterly earnings later Thursday, Gateway hopes 
the new PC will contribute to its trend of fast growth as it chases market
leaders Dell and Hewlett-Packard.

Although Gateway ranks a distant third in U.S. PC market share, it has grown 
faster than all competitors for the past two quarters. Gateway grew 16.3 percent
from 2005 to reach U.S. market share of 6.2 percent for the second quarter of 
2006, according to Gartner. Dell has 32.0 percent share, and HP has 18.9
percent.

Still, Gateway faces significant challenges; it posted a net loss of $12.3 
million for the first quarter, and must continue its search to replace Chief
Executive Officer Wayne Inouye, who resigned in February.

http://www.pcworld.com/article/126639-1/article.html

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