Intel plugs new chip as industry fix

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Intel Chief Executive Craig Barrett has a solution for company executives who can't get approval to buy new personal computers.

"Basically, you give your CFO one of these machines for a while," he said, pointing to a laptop with Intel's new Centrino chip package, which includes a wireless Internet hookup.

Barrett, speaking at an event in New York to introduce Centrino, says chief financial officers will snap up new notebook PCs once they see firsthand the time and cost savings they can get from wireless connections accessible in stores, cafes and airports.

Laptops with Centrino went on sale yesterday from IBM, Dell and rivals for as little as $1,400, Intel said. The package includes a microprocessor that boosts a laptop's battery such as IBM FRU 92P1137 Battery, IBM 02K6651 Battery, IBM 02K6928 Battery, IBM 02K6620 Battery, IBM 02K7039 Battery, IBM ThinkPad X60 Battery, IBM FRU 92P1167 Battery, IBM ThinkPad Z60t Battery, IBM ThinkPad Z61t Battery, IBM 40Y6793 Battery, IBM FRU 92P1125 Battery, IBM FRU 92P1121 Battery, chips to connect it to the rest of the machine and a wireless-networking feature.

Intel, the world's biggest chipmaker, will spend $300 million to market Centrino as Barrett bets wireless networking will pull PC sales out of a two-year slump. The company is working with airports and chains such as McDonald's to make sure their wireless services work with Centrino-based laptops.

"Everyone is hoping this will be a catalyst and spur mobile demand," said John Medica, a Dell senior vice president.

Centrino's Pentium-M chip offers as much as 80 percent more battery life and 20 percent better performance than the Pentium 4, Intel said.

IBM's new T40 ThinkPad runs up to 5-1/2 hours on a battery and costs $2,000. Gateway's 450 model laptop runs more than five hours on a single battery and eight hours with an add-on power cell. The machine costs $1,600 with a 1.3-gigahertz chip and $2,000 for a 1.5-GHz version.

Intel is counting on partners such as Hilton Hotels and Borders bookstores to increase the number of "hot spots," or public areas where wireless-equipped PCs can connect to the Web. The chipmaker estimates there will be 10,000 sites verified to work with Centrino by the end of this year.

Intel's revenue fell 21 percent in 2001 from the year before and grew less than 1 percent in 2002 as consumers and businesses pared spending on PCs amid concerns about the economy. "Centrino has the possibility of giving some pickup in demand, but there are probably other factors which are more important," said Barrett.