Intel Introduces Laptop Chips as Transmeta Gains (Update2)
9/25/0 16:15 (New York)
Intel Introduces Laptop Chips as Transmeta Gains (Update2)
(Updates with closing share price.)
Santa Clara, California, Sept. 25 (Bloomberg) -- Intel Corp.,
the No. 1 computer-chip maker, said it introduced three processors
for laptops as rival Transmeta Corp. gains ground with personal-
computer makers in the market for low-power chips.
The chips are two versions of the Pentium III and a Celeron
that will be used in mobile computers from 10 companies, including
Compaq Computer Corp., Gateway Inc. and Dell Computer Corp., Intel
spokesman Michael Sullivan said.
Fujitsu Ltd., Japan's largest computer maker, last night said
it will begin selling notebook computers using Transmeta's Crusoe
processor -- another win for the increasingly popular chip. Intel
and Advanced Micro Devices Inc. control more than 95 percent of
the microprocessor market, yet some analysts have said Transmeta
has won business because its low-power design helps batteries last
longer. Intel is trying to regain the spotlight, analysts said.
``While Transmeta may be more suitable for a certain class of
notebook like the ultra-light, where battery life is paramount,
ultimately for your all-around processor you've got to give it to
Intel,'' said Mike Feibus, principal analyst with Mercury Research
Inc.
The new Pentiums run at 850 megahertz or 800MHz when
computers are plugged into electrical outlets and drop to 700MHz
or 650MHz in battery mode, Santa Clara, California-based Intel
said. The latest Celeron operates at 700MHz. They cost $722, $508
and $181, respectively, when bought in sets of 1,000.
At 850MHz, 850 million electrical pulses go through the chip
each second. The more pulses, the faster a chip can handle tasks.
That means more performance than Transmeta can deliver,
analysts said. Still, they question whether laptop users need it.
Mounting Wins
Transmeta, which has chiefly targeted the market for light,
lower-power machines, has won several endorsements recently.
Fujitsu will use Crusoe in four different models. The earliest
will debut in November.
Hitachi Ltd. will start selling notebooks with Crusoe, while
International Business Machines Corp., Toshiba Corp. and NEC Corp.
are considering similar moves. Gateway and America Online Inc.
plan to put the chips in an Internet-access device to go on sale
this year.
PC makers contend that Crusoe's design helps extend battery
life. Intel has focused on selling chips for high-performance PCs
that run so fast they could almost replace desktop machines. Some
longtime users are wondering whether they need all that power,
analysts said.
``More-experienced buyers are drifting toward the Transmeta
end of the spectrum,'' said Giga Information Group Inc. analyst
Rob Enderle. ``They're tired of carrying the weight and not
convinced they need the performance.''
Posturing?
Transmeta's recent success has put a lot of attention on how
much battery life can be extended. Fujitsu said its batteries now
last as long as eight hours with Crusoe, longer than any previous
claims about the chip.
Sony said this month that power in Vaio laptops with a Crusoe
processor lasts as long as five hours. Intel said today that
batteries in mobile PCs with its new chips run from five to six
hours.
Though the difference may seem small, the companies hope that
bragging rights over low power consumption will provide useful
marketing material.
``With power management, there's a lot of posturing you can
do,'' Feibus said. ``The fact of the matter is the processor is
maybe a quarter of the total power consumption in the notebook.''
Intel shares fell 2.56 to 45.38 and have risen 10 percent
this year. Closely held Transmeta, also based in Santa Clara, has
filed to sell stock in an initial public offering. |
