Intel And Billionaire Slim Helu To Sell Cheap PCs
Parmy Olson, 03.31.06, 8:56 AM ET
London - Imagine a baseball manager who is stranded with his team in the middle of an inhospitable forest. With no field to play in, how does he keep everybody, including his fans, happy? Why, simply clear a spot and build the field himself, of course.
Intel (nasdaq: INTC - news - people ), like our imaginary baseball manager, almost certainly sees potential in developing regions like Latin America to boost its sales. But while the region touted as the "new India" is rapidly growing, many in the population are still without access to that all important chamber to Intel's vendibles: a computer. Cue a proactive move from Intel, to design and push through PCs itself.
The Santa Clara, Calif.-based company has just unveiled a small, inexpensive desktop aimed at first-time computer users that will be piloted in Mexico. The idea is similar to MIT's $100 laptop, in that it is small, energy efficient and features a simple interface. Incidentally the Google (nasdaq: GOOG - news - people )-funded $100 laptop project has been outwardly dismissed by Intel Chairman Craig Barrett as a "gadget".
We of course expect the vividly titled “Discover the PC” project to be different, and indeed Intel says it will deliver. Not only will it bring "the benefits of computing more broadly to people,” as the company's Chief Executive Paul Otellini said in a statement, we think the project could also see Intel push open a market to which it can supply its flagship product: chips.
This will all naturally hinge on sound grassroots rapport. Intel is reported to be providing local computer makers in Mexico with all the blueprints while Latin America's number one fixed-line telecom operator, Teléfonos de México (nyse: TMX - news - people ), will sell the cut-rate machines. Telmex, as it is known for short, is owned and chaired by Carlos Slim Helu, Latin America's richest man and the third-wealthiest person on the planet. His company, which has 70% of the Mexican telecom market, will work with Intel to initially peddle the computers to government buyers. The chipmaker will introduce the machines to other parts of the world later this year. |
