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

To: milo_morai who wrote (149821)	11/27/2001 9:06:57 PM
From: wanna_bmw	Read Replies (1) \| Respond to of 186894

Milo, Re: "But INTC has yet to prove any of these are a good investment with a short payback." Who ever said anything about short term? I regard myself as an Intel long. wbmw

To: milo_morai who wrote (149821)	11/28/2001 7:41:35 AM
From: Road Walker	Read Replies (1) \| Respond to of 186894

Intel sees big role for communication chips By Edmund Klamann TOKYO, Nov 28 (Reuters) - Intel Corp aims to generate close to one third of its revenues from communications products several years from now, although its processors may not soon dominate in mobile phones as they do in PCs, an executive said on Wednesday. ADVERTISEMENT Hans Geyer, general manager of the cellular communications division at the world's biggest chipmaker, said Intel's new chip architecture for wireless terminals was gaining acceptance. ``Out of all the different proposals on how to design cellphones, this is the architecture that has by far the broadest support from the industry,'' he told a news briefing. Although Intel holds a commanding share of the market for microprocessors in personal computers, its is considered a late-comer to the market in processors for mobile phones. But Geyer said the company had moved into the top ranks among communications chip makers in terms of revenues and noted that NEC Corp , Japan's biggest cellphone maker, was using an Intel processor in third-generation (3G) handsets for NTT DoCoMo Corp , Japan's dominant wireless carrier. Last month, DoCoMo launched the world's first commercial 3G service, which offers much faster transmission speeds and advanced functions such as video-conferencing. Although neither NEC nor any other major global handset maker was on a list of partners for Intel's Personal Internet Client Architecture (PCA), its new chip architecture for mobile devices, Geyer promised more names and bigger names would be added. Intel plans to spend $1.2 billion this year on research and development in communications, or nearly one-third its corporate total of $3.9 billion, although its third-quarter revenues on wireless and communications products accounted for just one-sixth the total at $1.09 billion. DOMINANT PLAYERS Geyer told Reuters after the briefing it would take three to seven years for sales to approach the same sort of ratio now seen in R&D. ``R&D significantly precedes the revenue flow,'' he said. He reiterated Intel's view that it was crucial to set common, open standards in cellphone architecture to aid the development of application software such as games or security functions that are seen as key to the success of next-generation services. Geyer said the cellphone industry was moving toward the sort of standardisation that he credited with the PC market's dramatic growth in recent decades. ``You see a lot of things happening in the cellular industry that were seen in the PC industry 10 years ago,'' he said. Asked about scepticism among Japanese handset makers that Intel would be able to dominate the cellphone processor market in the same way it dominates PC microprocessors, Geyer said there would likely continue to be more than one processor architecture for cellphones for at least the next five years. He said a recent initiative on open standards by Nokia , the world's top cellphone maker with one-third of the market, would be more likely to mesh with Intel's PCA standards than to compete with them. He also questioned how far other manufacturers would cooperate with the Finnish company. ``I still have a hard time believing Nokia's competitors will adopt Nokia's proposal,'' he said. Earlier this month, Nokia announced a partnership with many of the world's biggest wireless carriers and handset makers to create a global set of open standards for devices and data services, promising to offer the source code for its phones ``openly and on equal terms''. Intel also unveiled on Wednesday a series of wireless local area network (LAN) products, which connect PCs, printers and other devices without cables. The products, to be available in Japan in January, use the faster 802.11a standard running at 54 megabits per second, compared with 11 megabits for the current 802.11b standard. Intel's shares ended Tuesday trade up 44 cents at $32.31, their highest close in more than seven months. They have gained 7.5 percent since the start of the year, compared with a seven percent drop in the Philadelphia Semiconductor Index (^SOXX - news).