Intel Sees $40 Billion Worth of New Markets

 
 
By Scott Ferguson  |  Posted 2008-03-05 Email Print this article Print
 
 
 
 
 
 
 

The chip giant sees opportunities in consumer electronics, low-cost PCs, mobile Internet devices and embedded systems.

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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