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Technology Stocks : How high will Microsoft fly?
MSFT 474.82-0.8%3:59 PM EST

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To: JC Jaros who wrote (47306)6/28/2000 6:00:00 PM
From: Rusty Johnson   of 74651
 
Intel's in the kitchen with Linux

By Dean Takahashi
Redherring.com, June 23, 2000

Intel (Nasdaq: INTC) unveiled its first company-branded information appliance Thursday: a kitchen device that combines the capabilities of a phone and a computer.

Dubbed the Intel Dot Station, the appliance is being pitched as a "family communications" tool that integrates Web browsing, email, a telephone, and home organization functions. The device uses Intel's Celeron chips, but, rather than running Microsoft (Nasdaq: MSFT)'s Windows, it runs on the Linux operating system.

...

INTEL INSIDE ... YOUR KITCHEN

The one-piece device resembles a small portable TV set, with a telephone cord sticking out of its rear. The screen is big enough to display a typical Web page, and the device comes with a built-in tutorial aimed at making it easier to use than a PC. Yet Mr. Welch says it's also small enough to fit under a kitchen counter.

The device and others like it being designed by Intel's Home Products Group represent the chip giant's attempt to diversify beyond its core business of microprocessors for personal computers, leading it into competition with longtime partner Microsoft, which has announced plans to launch its own line of stripped-down info appliances.

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HIGH-END APPLIANCE

The surprising thing about Intel's specifications is that they aren't necessarily bargain basement. The device will have to use a more expensive sound system since it has a speakerphone. It also has a hard disk drive so that it can display Web sites quickly, as well as connections for speedy cable TV modems or digital subscriber lines, which deliver high-speed Internet over phone lines.

"Our research showed that people want quality and a good experience, not just a low price," Mr. Welch said. "With our bill of materials, you could say that some personal computers would cost less."



redherring.com

Best of luck.
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