BUSINESSWEEK ONLINE : MARCH 13, 2000 ISSUE
COVER STORY

THE NEW INTEL


INFORMATION APPLIANCES
A few years ago, Intel was convinced that PCs were the ultimate information appliance. But the possibility that something simpler or cheaper could attract millions of non-PC households became too attractive to ignore.
Chart: Growth in Information Appliances
DATA: INTERNATIONAL DATA CORP., COMPANY REPORTS
THE BOSS
Claude Leglise, 44, who used to manage outside software developers, got a new mandate in August, 1998, "to move Intel into the home, somehow," he says. Just 18 months later, Intel rolled out services and prototype products that should appeal to consumers and Internet service providers.

PRODUCTS
As yet undelivered, they'll use Celeron chips and Linux--not Microsoft Windows CE--software, and will be sold through phone companies and ISPs. Possible models include screen phones, e-mail terminals, and TV set-top boxes.

HOW INTEL STACKS UP
There are zillions of rivals--from startups such as Network Appliance to giants like Motorola/General Instrument. Intel is behind since it hasn't shipped any products yet. Another promising avenue: Intel is moving aggressively into chips for wireless phones.

ACQUISITIONS
DSP Communications ($1.6 billion).

MARKET GROWTH
PC unit sales in the U.S. are expected to be eclipsed in 2002 by combined sales of e-mail terminals, Web pads, screen phones, Internet-enabled TVs, and other such high-tech gizmos.



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RELATED ITEMS
The New Intel

COVER IMAGE: The New Intel

TABLE: Intel's Path beyond the PC

TABLE: The New Intel: Computer Processors

TABLE: The New Intel: Networking Chips

TABLE: The New Intel: Communication Products

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TABLE: The New Intel: Information Appliances

The Thrill of ``Clawing for Market Share'' Is Back (extended)

ONLINE ORIGINAL: Intel Investors May Need a Bit of Paranoia



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