To: David Lawrence who wrote (14032 ) 3/19/1998 10:18:00 PM From: Moonray Respond to of 22053
Intel puts PC industry on notice at CeBIT fair Thursday March 19, 9:04 pm Eastern Time HANOVER, Germany, March 19 (Reuters) - Intel Corp (INTC - news) on Thursday put the PC world on notice that its dizzying gains are not about to slow down anytime soon -- even for home computers priced under $1,000. At the CeBIT trade fair, Intel demonstrated a PC with a Pentium II running at 700 megahertz -- more than twice the rate of today's speed king, a 333 megahertz model. The company said such leaps in processing power would help spark a boom in the Internet and increase the global PC population to more than one billion in the next few years from 200 million today. ''I can easily see it hitting one billion in five years,'' Intel senior vice president Albert Yu told Reuters. ''It is going to be a very different world.'' Elsewhere at the sprawling trade fair, Germany's new telephone companies raised the pressure on rival Deutsche Telekom (DTEG.F),unveiling price cuts and new services, while moving to shake up Germany's cosy Internet industry, offering access services that are driving down prices for using the global computer network. Industrial giant Siemens AG (OTC BB:SMAWY - news; SIEG.F) also reported strong growth in foreign business at its key computer and communications units, but said the domestic market remains sluggish. But Intel was showing no signs of expecting sluggish growth. In its demonstration, the company used a PC to show an animated underwater scene that undulated with the current of the sea. As Yu moved the computer's mouse, it instantly wheeled the perspective of the animation skyward into a sun beaming into the depths and downward where submarines drifted by -- all with in a warping, watery image. ''You usually need a very powerful graphics workstation to do that,'' Yu said. After the demonstration, a second programme that measures processor speed showed the Pentium II was running at 702 megahertz. At that speed, a Pentium II PC would have the performance of what was the world's fastest supercomputer only a few years ago. Such massive processing power would enable PCs without extra equipment to talk to users and respond to spoken commands, said Gert Huegler, president of Vobis Microcomputer AG, one of Germany's top PC suppliers. ''That means many more people will use PCs. The ease of use border will fall,'' he said. Hans-Juergen Mammitzsch, head of Dell Computer Corp's (DELL - news) German unit, said the coming gains in processing power would also boost Internet commerce. ''There will be huge opportunities when home PCs can run full- motion video off the Internet, and the Internet becomes truly multimedia,'' he said. Intel, the world's dominant chip maker with about 85 percent of the market, said 700 megahertz chips should hit the market in the next few years. ''This is still a technology demonstration, but that is where we are going,'' spokesman Michael Sullivan said. And it has even faster chips in the works. Yu, in a news conference, also showed a simulation of the Merced processor, which is due next year and should run at even higher speeds. Sullivan would not say how fast Merced chips would run, but he said they will be made on a more advanced process than Pentium II. ''Past history is that a new process gets you more speed,'' Sullivan said. While working on high-end chips, Intel has also developed new processors for home PCs. Next month it will launch a new Celeron brand that will hit 300 megahertz later this year and appear in PCs priced from $800 to $1,200, Yu said. Other important trends at the fair were seen in telecommunications, where liberalisation of European markets has been driving down prices in Germany. Telekom's leading competitor, Mannesmann (MMWG.F) announced price cuts at both its fixed-wire network Mannesmann Arcor and its mobile phone group Mannesmann Mobilfunk. Arcor said it would cut prices on some calls by up to 30 percent, while Mobilfunk unveiled a Favourite Number rate, giving 10 percent off all calls to a selected number. Deutsche Telekom recently gained regulatory approval for price cuts of more than 40 percent in some areas. Meanwhile, Siemens was seeing solid growth in sales of telecommunications equipment to phone companies. Its public communications unit saw five-month sales rise 30 percent to 6.5 billion marks, although domestic sales were down 15 percent. Computer group Siemens Nixdorf said its foreign business had been the main engine as European sales outside of Germany grew eight percent in the first five months. o~~~ O