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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Dan3 who wrote (135333)	5/17/2001 2:10:22 PM
From: Paul Engel	Respond to of 186894

Blow Hard Dan - Re: "Given that Intel's com division loses about 30 cents for every dollar of gross revenue it takes in, it is a little scary that Intel is expanding that business, isn't it?" Scary for AMD - which is now a one-trick phony - whoops - PONY ! Look at Intel's projections - "(For Intel) this market could be tens of billions of dollars," Ron Smith, senior vice president of Intel's wireless communications and computing group, told Reuters in an interview at a developers conference. " Intel eyeing huge handheld-chip market By Reuters May 17, 2001, 10:40 a.m. PT news.cnet.com AMSTERDAM, Netherlands--Intel underlined its aggressive expansion plans in the communications arena when the world's largest chipmaker said on Thursday it could generate sales worth tens of billions of dollars with chips for cell phones and handheld PCs. "(For Intel) this market could be tens of billions of dollars," Ron Smith, senior vice president of Intel's wireless communications and computing group, told Reuters in an interview at a developers conference. The average cell phone has $60 worth of silicon components. With more than 400 million handsets sold last year alone, the market is worth $24 billion annually, he said. As phones become smarter and sales continue to rise, Intel wants a large chunk of that market. To that end it unveiled its "Internet on a chip" technology Thursday. Intel said it designed all key components of wireless devices on a single chip. British Telecommunications said it would develop applications that could work with Intel's new technology. Smith gave no deadline for Intel achieving its billion-dollar wireless-component sales goal, saying only: "Sometime in the future." Intel racked up $33.7 billion in sales in 2000, of which more than three-quarters was generated by microprocessors and equipment for personal computers and server computers. However, as computer-market growth is slowing--the U.S. PC market even dipped into negative territory in the first quarter of 2001--Intel is investing heavily into communications technology for Internet-traffic computers and wireless devices. It is dedicating about one-third of its 2001 research-and-development budget of $4.2 billion to communications products, and it has spent close to $5 billion on takeovers in that area in the past few years. Smith said Intel was working with dozens of partners on its new architecture for handheld devices. "We work with just about everyone, including a number of European manufacturers," he said. The wireless-semiconductor area is dominated by companies such as Texas Instruments, Philips Semiconductors, Motorola, St. Microelectronics and Toshiba, but Smith said Intel has an advantage as phones become small computers that have to process data information in addition to voice. "It's all about data, and that's where our historic strength is. It's all Internet. There's no separate Internet," he said. By combining the key components of a cell phone on a single chip including a radio function, a processor, memory and the ability to convert speech into data and vice versa, Intel said it will reduce the energy consumption of a phone. Like most other communication chipmakers, Intel buys a lot of core chip architecture from outside design shops. Also on Thursday the company said it would license technology from TTP Communications, as it licenses ARM designs. British Telecommunications said it chose Intel because it recognized that the configuration between handsets and wireless networks is becoming more complex because of the Internet and needs to be standardized to work. "Our vision is that customers want to get their data on a wide range of devices--PCs and cell phones alike. This means a closeness between network architecture and semiconductor architecture," said Nick Reede, chief technical officer of BT Exact Technologies. Story Copyright © 2001 Reuters Limited. All rights reserved. Go to Front Door \| Enterprise