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Intel pins hopes on new business product

Averill to replicate Centrino's success?

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Only a week after reporting a drop in quarterly earnings, Intel is today expected to launch a fresh bid to capture market share in the business computing segment.

Based on reports in the New York Times, the microchip manufacturer's newly branded line of processors is designed for companies which manage and maintain a large fleet of personal computers. Online rumours suggest the business brand could be called "Averill".

Intel has been losing market share to main competitor Advance Micro Devices (AMD) recently, and commentators suggest the chip giant is hoping the new business platform range will replicate the success the Centrino brand has enjoyed since its release in 2003. Centrino was the name Intel gave to a chip range designed to handle the wireless capabilities of laptops and mobile devices.

Meanwhile, in a fresh blow to the Californian chip giant, the Korean stock exchange (KRX) broadcast that Samsung Electronics has usurped Intel to become the world's largest semiconductor manufacturer in terms of market value. The stock and futures exchange announced Samsumg's value, counting preferred stocks, amounted to $120.1bn last Friday. Intel's market capitalisation of $112.1bn was announced on the same day, according to Thomson Dialog.

However, this may not be all bad news for Intel as it attempts to get away from being just an ingredients brand to one that designs and produces branded multiple hardware components with specific capabilities. For example, the successful Centrino range was marketed based on its wireless capabilities, while the Viiv series - launched in January - is designed for home multimedia use.

Intel representatives in Ireland could not be contacted at the time of publication, but ElectricNews.Net will report on any new developments.

The firm, which employs around 5,600 people in counties Kildare and Clare, reported a 38 per cent drop in first quarter earnings last week compared to the same period last year. The profit drop to $1.3bn was announced alongside earnings per share of $0.27 - in line with Wall Street expectations.

In Ireland, Intel produces chipsets to support the Centrino brand and Flash technology.

While Intel insists it will have its current problems in hand by the second half of 2006, market analysts are divided on the accuracy of this self-prognosis.

Copyright © 2006, ENN

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