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January 8, 2008

Intel Banks on Ultramobile Computing

Intel Corp. is betting on a big expansion of “ultramobile” computing, an idea that could hinge on how many gadgets people are willing to tote around.

In an interview Monday at the International Consumer Electronics Show, Intel CEO Paul Otellini said energy-efficient, Web-connected computers with full keyboards and screens in the 4-inch (10.16-centimeter) neighborhood can give people more of what they want from the Internet than cell phones can.

To help stimulate the technology, Intel plans in the next few months to begin shipping processors and associated “chipsets” that demand relatively little power and are smaller than standard PC processors, allowing them to be crammed into tinier devices, which would be built by other companies.

Eyeing a similar market, wireless chip maker Qualcomm Inc. also has built prototypes of little Web devices. Its chief operating officer, Sanjay Jha, said he expects manufacturers to take up the blueprints and begin selling what he calls “pocketable computers” by the end of this year.

So far, so-called ultramobile computers, smaller than average laptops but bigger and more fully featured than most cell phones, have gotten a tepid response.

With the devices’ prices often beyond $1,000 (EU679), many potential buyers have found little reason to scale down from their notebook computers or up from cell phones that have been improving their Web browsing experience.

“How do you make people realize that this is something advantageous to them and different from the notebook experience?” said Richard Shim, an analyst with IDC, a market research firm. “That’s the trick. Nobody’s been very good at that yet. … It’s not as widely compelling as it needs to be if they want it to compete on the level of a phone or a PC.”

But Otellini said such distinctions will cease to matter, especially since small Web devices can incorporate cell phone functions. And he…

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