Intel Sees $40 Billion Worth of New Markets (
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SANTA CLARA, Calif.—During
the next several months, Intel will use a combination of new microprocessors
and platforms to target four specific markets that the chip giant believes are
worth $10 billion each.
At its annual Investor Day conference here, which started March 5, CEO
Paul Otellini said the company is about to deliver whole new sets of products
for four specific markets that he estimated are worth a total of $40 billion.
The four markets that Intel will target in the coming months include
low-cost PCs, MIDs (mobile Internet devices), consumer electronics and the
embedded systems space. While it’s estimated that these markets are worth $10
billion each, executives did not say what specific percentage of that revenue
Intel would target.
The linchpin to all four of these markets is the company’s soon-to-be
released Silverthorne
processor, which is based on Intel Architecture and the company’s
45-nanomter manufacturing process. These chips are designed to offer good
performance while consuming less power.
In his talk to analysts, Otellini said these four specific markets, along
with the company’s core PC business, will allow Intel to tap into a growing
desire by users for what he called “richer
Web experiences” as well as the emphasis on mobility and ability to access
the Internet anywhere.
“It’s not just the 1 billion people that have access to the Internet now;
it’s the next 2 billion people,” said Otellini. “It’s not just about selling
more PCs, but bringing new devices and new price points to bring those people
onto the Internet.”
The key to these markets is to create a common processor architecture that
OEMs and ISVs can use to build both hardware and software for these four
markets without having to radically change the platform and allow vendors to
bring new a range of new products to market much faster.
Earlier this week, Intel announced that Silverthorne, which is designed for
MIDs, and Diamondville, a derivative of Silverthorne and created for low-cost
PCs, will be
rebranded as Atom to emphasize their small size. Otellini expects that
devices built around these two processors to enter the market by the second
quarter of this year.
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