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Inside or Outside: Intel is Everywhere

by Jyotirmoy Banerjee - October 17, 2006 - 0 comments

Unbelievable but true to its core, is what the biggest chipmaker Intel Corp. has to say. Intel Corp. shipped 5 million of its new dual-core processors (Core 2 Duo) in the first two months of its sales, amid signs of strong demand for laptop PCs this quarter, company executives said on Monday.

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[quote=Jyotirmoy Banerjee]<div class="flexinode-body flexinode-1"><div class="flexinode-textarea-1"><div class="form-item">
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 <p>Unbelievable but true to its core, is what the biggest chipmaker Intel Corp. has to say. Intel Corp. shipped 5 million of its new dual-core processors (Core 2 Duo) in the first two months of its sales, amid signs of strong demand for laptop PCs this quarter, company executives said on Monday.</p>
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 <img alt="Inside or Outside: Intel is Everywhere" src="http://www.themoneytimes.com/filess/intel_inside_skull_sm.jpg" /><br /><a href="http://www.themoneytimes.com/filess/intel_inside_skull.jpg">Get original file (10KB)</a>
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 <p>Intel reached the sales mark for the new Core 2 Duo, which use a pair of processing cores on a single chip, within the first 60 days of their going on sale on July 27, Thomas Kilroy, vice general manager of the digital enterprise group, said at a developers' forum hosted by Intel in Taipei.</p>
<p>Kilroy also focused on some negative aspects such as the Sony battery recall issues which hampered the overall temperament for buying laptops to a considerable extent.</p>
<p>Intel gave the sales figure as other executives forecast a strong fourth quarter for notebook PCs. "We believe that notebooks will be strong in the fourth quarter," said Mooly Eden, general manager for Intel's mobile platforms group.  </p>
<p>The Core 2 Duo chips will account for only a small fraction of the nearly 200 million processors Intel is expected to sell this year. The Core 2 Duo by no means is the biggest seller at this point because statistics related to older version chips have not been synchronized with the sale statistics of Core 2 Duo chips.</p>
<p>Irony is Core 2 Duo isn’t the last thing coming from Intel this year. Intel has already pre-planned the launch of “the next big thing”. It will start selling quad-core chips on 13 November.</p>
<p>Currently, Intel is in the middle of a major overhaul of its products as it seeks a sleeker product line to compete with rival Advanced Micro Devices (AMD), which has gained a steady market share in the last few quarters.</p>
<p>The quad-core chip will appear in a new line of Hewlett-Packard workstations that will most likely use Intel's Xeon 5300 chip, designed to run high-end applications like seismic analysis and visualisation software. The launch would mean that Intel beats AMD for the time being.</p>
<p>Multiple-core chips can accelerate processing tasks in desktops and servers without drawing more electricity and generating extra heat. They can also handle more than one instruction set at a time, allowing computers to multi-task more efficiently.</p>
<p>In its reply AMD plans to release its own quad-core chips in the middle of 2007, and claims its monolithic design is superior to Intel's, which essentially glues two dual-cores chips together.</p>
<p>But the sad part on AMD’s part is that, around the same time as AMD's quad-core chips hit the market, Intel also hopes to start shipping 45-nanometre versions of its latest microprocessors. At the moment, Intel produces the majority of its Core 2 Duo microprocessors using the larger 65nm technology, and the smallersize will improve chip performance by 20 percent, the company claimed.</p>
<p>In a comparative financial study, Intel's share of the personal-computer processor market fell to 72.9 percent in the second quarter from 82.2 percent a year earlier, according to Cave Creek, Arizona-based Mercury Research.</p>
<p>Asia accounts for the largest share of Intel's sales at 50 percent, based on second-quarter income, followed by the Americas with 21 percent.</p>
<p>Shares of Intel have declined 13 percent this year, compared with an 18 percent drop in Advanced Micro's stock. The S&P 500 Index climbed 9.4 percent in the same period. Intel's shares rose 0.5 percent to $21.60 in New York on Oct. 13. </p>
<p>Intel in September announced it would cut 10,500 jobs, or about 10 percent of its work force, following a three-month top-to-bottom review of operations.</p>
<p>Analysts have said the firm needs to take drastic action to reverse sliding profits and halt steady market share erosion. This move might bother the employees , but should never bother the Corp. as it already had workforces in buffer.</p>
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