The World's Thinnest Notebook

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"It's like jewelry," says Omer Kotzer, a creative director at Ziba, a firm renowned for consumer-electronics design (see BusinessWeek.com, 10/11/05, "Sirius Radio's Radical Handheld").

And like cell phones, which come with different ringtones and in different colors, this laptop also strives to be a personal fashion accessory. The computer comes with a diary-like folder that attaches to the laptop via magnets. The folder, available in different colors, also functions as a wireless charger for the device. One side features a screen made of material devised by E Ink, one of the recipients of investment by Intel Capital. It can display a picture, the calendar, or your schedule for the day.

"It was inspired by traditional stationery," Kotzer says. "It ties back to premium stationary that used to be bound in beautiful leather." A special shoulder strap, matching the folder in material and color, can be attached to the laptop, turning the computer into a makeshift purse.

Embedded Chips

Though designers say the product is unisex, as a fashion accessory it may carry particular appeal to women, a group Intel has long wanted to win over. "Increasingly, women are often the decision makers, particularly with high-end purchases," says Richard Shim, an analyst with IDC. "More and more companies are starting to pay more attention to the female market segment."

But Intel wants to ensure the laptop appeals to wide range of users. "As a market matures, vendors who focus on particular market segments tend to do better," Kay says. Patrick Lynch, an Intel manager, says the design is geared toward any professionals on the go—for instance real-estate agents and salespeople who tend to work from different locations, such as Starbucks (SBUX), cars, and other companies' offices.

These users might appreciate this device's always-on wireless connectivity. Today's laptops can connect to Wi-Fi wireless networks but require special cards to surf the Web via cellular networks. This model's embedded chips let users access cellular, Wi-Fi, or WiMax wireless broadband networks. (Intel is expected to release embeddable chips that access all these networks in late 2007, early 2008.)

Embedded cellular connectivity could change the way laptops are sold. In the U.S., cellular network technology varies by carrier. So PC manufacturers might have to start selling special adapter cards, such as the Subscriber Identity Module (SIM) cards used by some carriers in Europe. Or the laptops may need to be marketed through the service provider for whose network they are designed.

Wow Factor

The laptop contains other features its makers hope will resonate with users. It includes so-called small array microphones from Fortemedia, another company funded by Intel Capital, designed to cancel out background noise, often experienced by fans of Web-calling applications like eBay's (EBAY) Skype. The computer also is built to enhance security, boasting a fingerprint reader and a mechanism that lets users kill a hard drive by remote control.

Of course, whatever version of the computer makes it to market may not include all these features. And if it does, it's not clear the machine will be available at the right price. For Intel, "price was not a concern," says Bob Sweet, account director at Ziba. The same can't be said for PC manufacturers, whose margins are under pressure.

Still, Intel and Ziba hope the device wows some segments of the market. "If you want to make a splash in the market," Sweet says, "this is the way to do it."

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Kharif is a senior writer for BusinessWeek.com in Portland, Ore.