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Saturday, June 19, 2004

Intel Is Aiming at Living Rooms in Marketing Its Latest Chip via NYT

For decades, the Intel Corporation has expanded its core business by making computer chips that are faster and by lowering their cost. Next week, however, the company plans to shift gears; it will mute its traditional speed message and focus instead on an array of consumer-oriented features to bolster growth.Intel is planning to announce its newest foray into the home computing market, blending performance, wireless capability and multimedia audio, video and image features into a set of chips that will be at the core of the next-generation personal computer.The new three-chip suite, which has been code-named Grantsdale, is also the clearest expression of the "innovation and integration" strategy of Intel's rising star, Paul S. Otellini, the chief operating officer. That strategy is both a plan to lure consumers and a bet that Intel can create a new wave of growth in consumer electronics. "Intel has changed its design paradigm to start not just adding gigahertz, but to adding features that users demand.,"The new chips will make possible higher-speed computing, more reliable storage and more advanced audiovisual standards and will represent fundamental change in the internal structure of the standard PC. Intel's focus is not just on technology leadership but on how people will use it.The challenge for Intel's plans to make the PC the home's entertainment media server,is that wireless data standards are not yet ready to move video data seamlessly around the house.

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