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Jul. 18--Intel, the U.S. chipmaker, is joining forces with electronics manufacturers to ensure the consumer market is deluged with combination PCs and televisions costing less than UKpound 1,000 (E1,500, $1,860) this Christmas.
The mass adoption of the hybrid devices is crucial for Intel. Its new Grantsdale chips are designed for multimedia applications. Intel's chips are being used in new devices made by global giants such as Toshiba and local manufacturers including Evesham Computing. They will enable consumers to have increased control over programming and to surf the web on their TV screen, using remote controls.
Intel told The Business it believes sales of the new devices will start to benefit its bottom line soon after the Christmas rollout. "The widespread adoption of the new devices will start to seriously improve Intel's revenues in 2005," said a spokesman.
Despite coming in ahead of analyst expectations last week, Intel's second-quarter revenues showed its main chip business is lagging its flash memory business in growth. Intel is determined to push the new combination PC-TVs as hard as possible as most of the models on sale in the run-up to Christmas will be carrying Grantsdale chips. In the UK, for example, the company is organising roadshows at shopping centres across the UK to showcase the way the technology can be used in the home.
Similar publicity campaigns have been orchestrated by the equipment manufacturers. This week Toshiba is hosting media briefings in the Toshiba Home in London, a model flat that demonstrates its all-in-one computing and entertainment devices. The company is also expected to demo its Qosmio laptop, a portable computer that also comprises a digital television. The device is being billed as the first laptop that allows users to pause live television or record a show and is expected to cost about $2,500.
Intel is hoping UK sales may be helped by government tax breaks allowing companies to subsidise home PCs for staff.
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