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


To: Srini who wrote (74494)2/25/1999 6:46:00 PM
From: puborectalis  Respond to of 186894
 
Intel gunning for embedded market
By Michael Kanellos
Staff Writer, CNET NEWS.COM
February 25, 1999, 12:50 p.m. PT

Intel will start marketing Celeron chips--currently being used inside desktop PCs--to
industrial monitoring devices, oil derrick equipment, ATM machines, and other
"embedded" applications, an effort that could open new revenue opportunities for the
company. .

"The uptake of PC technology into these spaces is much more rapid than anyone could have predicted in the
past," said Ron Smith, vice president of the Computer Enhancement Group at Intel. "We're very serious about
going after it."

As part of the effort, the company introduced Celerons running at 300 MHz and 366 MHz for the industrial
market. Medical imaging and other high-end equipment makers, meanwhile, are looking at incorporating the
Pentium III into their products.

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The shift is subtle but could potentially prove significant. Intel for years has sold its older PC processors to
industrial equipment manufacturers and devices makers. The 486 and Pentium processors, for instance, power a
number of industrial products. Many of the alphanumeric pagers from Bell South and others are powered by X86
processors, said Smith.

Intel, however, has not regularly sold current desktop processors for these applications. By increasing the
performance of their embedded processor offerings, Intel could potentially increase its market share, which is not
huge, especially in comparison to the PC market.

Increased emphasis on industrial and consumer electronics could also increase sales
of flash memory, board products, and graphics chips because the company can
design "all-in-one" solutions.

PC synchronicity is driving the industrial effort, said Smith. As more industrial
equipment is hooked up to Internet networks, there is a larger need for common
technology systems, he said. By contrast, ATM machines and consumer-centric
devices are running more multimedia applications, which often emerge from the PC
platform.

Success, of course, is far from guaranteed. Motorola has led this market for a number
of years. Processors for this market also sell for relatively low prices. Smith indicated
that the industrial Celerons would sell for the same price as desktop Celerons.

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