Intel Overhauls Its PC Chip Line, Pressuring AMD By DON CLARK Wall Street Journal
July 28, 2006; Page A10 http://online.wsj.com/article/SB115404561490819856.html?mod=technology_main_whats_news Intel Corp. announced a long-awaited overhaul of its highest-volume chip lines, a new phase of a counterattack against rival Advanced Micro Devices Inc. that could spur computer sales in the next several months. The Santa Clara, Calif., company introduced 10 chip models in a product family called Core 2 Duo, which replaces Pentium as Intel's high-end brand for chips that serve as calculating engines for desktop and laptop computers. Intel's new chips provide a substantial performance boost, while consuming less power than earlier models. Paul Otellini, Intel's chief executive, called the Core 2 design "the best microprocessor we've ever built" at a company gathering in Santa Clara. Intel badly needs some bragging rights. The company, coming off a quarter in which profit fell 57%, is trying to counter the perception that it has fallen behind AMD's technology. The new Core 2 chips, based on a power-efficient design that is shared with some new chips for server systems, have been beating AMD's systems in most performance tests run by industry trade publications. With this announcement, Intel "has solved most of their problems," said Mark Edelstone, an analyst at Morgan Stanley. Most customers will have to wait to see the benefits of the new technology, though. Only a $999 model for gaming PCs, called the Core 2 Extreme, is available now. Personal computers that use other members of the desktop chip family -- which are priced at $183 to $530 each -- aren't expected to be available until late August. Intel didn't disclose pricing yet on mobile versions of the Core 2 Duo line, which Intel will begin to ship to notebook makers in September. Intel's Core 2 technology, though it may miss the back-to-school season, could help drive demand during the pre-Christmas period and counter delays in the introduction of Microsoft Corp.'s Windows Vista operating system. That software now isn't expected until the first half of 2007. Sean Maloney, an Intel executive vice president, said the company is planning a major increase in advertising to help promote the new technology. The broad price cuts that Intel launched ahead of the new Core 2 products already are having an effect. AMD has been forced to respond, helping to drive down computer prices and stimulating demand. Those two factors are helping to counter some negative factors weighing on PC demand, including high energy prices, said Rob Enderle, a Silicon Valley market researcher. One place the pricing-cutting is being felt is in notebook computers, an Intel stronghold where AMD had been gaining market share. Samir Bhavnani, an analyst at research firm Current Analysis, estimates that Intel's chips regained 13 percentage points of market share in laptop computers among the U.S. retailers it tracks over the three months ended July 1. ================================ George Antunes, Political Science Dept University of Houston; Houston, TX 77204 Voice: 713-743-3923 Fax: 713-743-3927 antunes at uh dot edu Reply with a "Thank you" if you liked this post. _____________________________ MEDIANEWS mailing list [email protected] To unsubscribe send an email to: [EMAIL PROTECTED]
