Intel’s (INTC) New Chip: When Is Enough Enough?

Intel’s (INTC) new Intel Core i7 chip is a miracle of modern science. It is much faster than all of the company’s older multi-core chips. And it uses less energy than some but not all of them. Over time, in volume, it will probably cost less than past products.

The continuing advance of chip capacity does raise the issue of when PC and server users come to the point where the additional computing power does not make much difference.


According to The Wall Street Journal, "Performance gains were particularly impressive for tasks such as video encoding and rendering three-dimensional images." Those features are not ones that the great majority of PC and server customers need.

While Intel is not putting itself out of business by making better and faster products, it probably is moving toward a future when its best chips are so good that the market for them is modest. Part of the solution to that is that Intel is making small and cheap processors for "netbooks", a way to build a new channel for sales. But the revenue and margins on these are not spectacular.

Intel’s future may have more innovation, but it is also likely to have slower growth and worse net income. the firm created a world that makes those things inevitable.

New Intel chips power skinny laptops

Now, Intel Corp. is pushing slightly more powerful chips for slightly larger computers that still have key netbook qualities such as a light weight and long battery life. Could this be a Goldilocks moment for laptops - when we get machines that are just right?

I tested two new models with the new processors, Acer's Timeline 3810T and MSI's X-Slim X340. Acer's model achieves a great balance of weight, features and power. The second ... well, Goldilocks would have moved on after trying that bowl of porridge.

The disappointing thing about both models is that they list at $900, twice the price of a netbook, and 50 percent more than a low-end laptop. The good news is that just a few years ago, capable laptops in same weight class - around 3 pounds - cost at least twice as much.

Both computers have 13.3-inch screens that match the proportions of an HDTV screen and run Windows Vista Home Premium. Neither has a DVD drive. Otherwise, they're quite different.

The X-Slim is an eye-catching, sleek design that, to be blunt, copies a lot from Apple Inc.'s ultra-slim MacBook Air. The X-Slim is just as thick as the thickest point on the Air, though the Air tapers off from a bulge under the hinge while the X-Slim keeps an even thickness. At 2.9 pounds, it's a hair lighter than the Air and lighter than some netbooks.

How does MSI do it? Plastic. The Air's chassis is machined out of a big piece of aluminum, giving it rigidity. The X-Slim is all plastic, and its wrist rest and keyboard flex under your fingers in a way that doesn't inspire confidence.

Acer's Timeline has a more conventional design that wouldn't look out of place in a boardroom. It has a brushed-metal cover that resists fingerprints and has a pleasant keyboard. It weighs 3.5 pounds - heavier than the X-Slim but about 2 pounds lighter than a typical 14-inch laptop.

Inside, these computers sport Intel's ultra-low voltage processors, or ULVs. Similar processors have been on the market for some time at high prices, but Intel is now bringing them down so they could go into a $600-$700 laptop, positioning them as a step up from the Atom processors that run netbooks

Intel to rebrand some chips, phase out "Centrino"

SAN FRANCISCO (Reuters) - Intel Corp plans to phase out some of its brands, including the "Centrino" for computers, to focus on fewer top names as the chip maker expands into new markets such as mobile devices.

Santa Clara-based Intel said on Wednesday it will stop using "Centrino" to refer to personal computers beginning next year. Instead, it will use the brand to refer to WiFi- and WiMAX-based wireless products.

The world's top chip maker, known for its ubiquitous "Intel Inside" stickers, also said it would phase out sub-categories of its Core brand, such as "Core 2 Duo."

"We have a complex structure with too many platform brands, product names, and product brands, and we've made things confusing for consumers and IT buyers," Intel spokesman Bill Calder wrote on a company blog.

"Today the Intel Core brand has a mind boggling array of derivatives (such as Core 2 Duo and Core 2 Quad, etc). Over time those will go away and in its place will be a simplified family of Core processors."

The company plans to repackage its Core family of microprocessors with a simpler naming scheme -- the Core i3, Core i5 and Core i7 -- describing basic, mid-range and high-end features within the Core line, respectively.

Desktop computers based on the Core i7 chip were launched in November 2008. The company said Core i5 and Core i3 chips will launch in coming months.

But Intel said it would keep its overall, consumer friendly branding for microprocessors such as the Atom, Celeron, Pentium and Core chips.

The Atom is designed for netbooks -- small, ultra-portable laptops -- and mobile devices. The Celeron, Pentium and Core chips are designed for both desktop and laptop computers and the Core chips are Intel's highest-end microprocessors.

Intel’s CULV: New Name for Old Chips

Have you heard about the newly announced computers with the mysterious and non-alluring CULV acronym yet? If you haven’t, get ready for a big dose of them, because they’re about to pop out of the woodwork. They’re exciting! They’re stupendous! That’s what Intel would have you believe anyway, since it created the CULV moniker, which is the sexy way of saying “Consumer Ultra Low Voltage.” Here’s the non-sexy and actually descriptive definition I like to use: They’re a cheaper, lower-powered device sitting somewhere between the netbooks and traditional notebooks that are currently available. Due to the smaller chip size and lower power requirements, you’ll see CULV notebooks that are smaller, lighter and thinner, but you’ll sacrifice some relative processing power. Acronyms are nice, but clearly it causes some folks to think that CULV notebooks are a whole, new device class, which only serves to confuse consumers.

While marketing gurus would have you think these Intel CULV processors are newfangled, cutting-edge technologies, I’ll spell out the reality. Currently available notebooks with the CULV platform are running a modified Intel Pentium, a Core 2 Solo or a Core 2 Duo, which have been around for three years. I have little doubt that the new CULV chips have some advanced technologies (you can read about them in this Intel PDF), but for all intents and purposes, Intel is essentially creating a lower-power version of the old chips, newly christening them with four letters and pairing them with the new GS-40 chipset.

You’ll find notebooks from MSI, Acer and others that use CULV chips like Intel’s SU9400 or SU3500, each with a 1.4GHz clock speed, 3MB of L2 cache, and an 800 MHz front-side bus to move data around. The difference is in the power requirements: The TDP rating for the SU9400 is 10 Watts, while the SU3500 uses roughly half of that.

So why the new acronym for a rework of old architecture? As they say, money makes the world go round, and the lowly Atom chips that power netbooks that are a tad smaller than the CULV devices only pull in between $29 and $45 per chip for Intel. On the other hand, the two Core 2 CULV chips sell for $262 each. I’d take an educated guess that the average netbook price is around $350 or $400, while the CULV devices are in the $600 to $700 range so far, making for a $250 to $300 difference for consumers. It looks like Intel’s CULV chips could grab most of that premium, fancy new name or not.

For years, the race was for faster clock-speed. But without any major advances in battery technology, the new race is all about power efficiency. After all, the best mobile CPU in the world is useless if it eats through a battery when there’s nary an electrical outlet in sight. Too bad the entry for this race is the same as before — well, other than Intel scratching out the name on the entry form and replacing it with CULV.

Intel launches chips for low-cost, thin laptops

Intel is launching its line of processors for thin, inexpensive laptops at the Computex tech conference in Taipei. Intel marketing chief Sean Maloney talked about this in a phone interview.

"It's clear that people like devices to be thin and light," said Maloney, who was speaking from the Computex conference in Taipei where he will be giving a keynote on Tuesday.

"We've really taken that to heart and come out with a complete top-to-bottom range of microprocessors that enable radically longer battery life and much smaller designs," said Maloney, referring to Intel's new lineup of consumer ultra-low-voltage (CULV) processors.

Maloney continued. "There are a lot of computers being announced here (Computex) that look like conventional notebooks in terms of how wide the screens are, but they're super-thin, the performance is very good, and they get up to nine hours battery life without a big, fat battery at the back," he said.
MSI X340 X-Slim laptop is one of the first CULV laptops

MSI X340 X-Slim laptop is one of the first CULV laptops
(Credit: MSI)

"It's a big change for industry. It means the technology weaves its way into your life more because you're going to have all-day notebooks," Maloney said.

The new processors will encompass the Core 2, Pentium, and Celeron processor architectures, according to Maloney.

Prices for these new laptops will start at $399 and range up to $2,000 in some cases, Maloney said.

And will laptops based on these chips impact the sales of Netbooks? "I don't think so," Maloney said, but added: "It's a loser mentality to not develop one segment because you're worried about the other."

Maloney continued. "The demographics (for Netbooks) that's completely untouched is kids between the ages of 7 and 12. So, the Netbook market is still at a very early stage," he said.

In addition, Intel unveiled the Mobile Intel GS40 Express Chipset for the new ULV-based laptops. This "value" chipset enables ULV-based laptops to support HD (high-definition) playback, Windows Vista Premium support and native support for integrated HDMI (High-Definition Multimedia Interface).

Wireles options will include embedded WiMAX or Intel "My Wi-Fi" technology. My Wi-Fi transforms a laptop into a WiFi personal area network, connecting directly with up to eight Wi-Fi-certified devices, according to Intel.

Though a crush of new thin laptops are expected, the MSI X340 is one of the first. The X340 has a 13.4-inch screen, weighs 2.86 pounds, and measures .78 inches thick.

AMD keeps pressure on Intel with more six-headed server chips

Advanced Micro Devices is launching two new versions of its chips with six brains today. The AMD Opteron HE and SE server microprocessors have six cores, or processors, on a single chip. The introduction is the latest volley in the ongoing tennis match AMD is playing with Intel.

With these two new versions, AMD is spreading out its product line and executing better. It launched its first six-core chip on June 1, about six months ahead of schedule. Now it’s adding more flavors for customers who have slightly different needs. These ones offer 18 percent better performance per watt of power than the company’s previous models.

But the market remains extremely competitive. Analysts note that Intel’s Nehalem family of server processors has been extremely well received this year. AMD has to keep on the treadmill just to make sure that it doesn’t lose ground to the world’s biggest chip maker.

AMD’s Opteron SE version is a high-performance model that is aimed at delivering the best performance for scientists running high-performance computing experiments. But it consumes 105 watts of power, or enough to cook an egg on top of it. The HE version is a low-power chip that consumes 55 watts. The HE is more appropriate in densely packed servers where staying energy efficient is the priority.

The HE chips are more like what computer makers will use to build large cloud-computing data centers. Those data centers would likely serve various Web 2.0 companies that have to serve a lot of web pages to consumers, said Steve Demski, product manager at the server and workstation division of Sunnyvale, Calif.-based AMD. The interesting thing is that it’s more likely that all server makers will adopt the low-power version, while a handful are likely to adopt the high-performance version. If you look back some years, that’s the exact opposite of what you used to see.

The HE versions range in price from $455 to $1,019, while the SE versions cost $$1,514 to $2,649. Among the customers introducing new machines based on the chips today is Hewlett-Packard, the leader in the server market. If AMD keeps this up, it could have a pretty good year. AMD is expected to lose money in the second quarter, but it may do better in the second half of the year, according to FTN Equity Capital Markets analyst JoAnne Feeney. We’ll see how the competition is shaping up starting on Tuesday, when Intel reports its second quarter results.

Rumor: Apple could skip Intel chipsets for next MacBook

AppleInsider has reported that Apple just might skip Intel’s chipsets for their next generation MacBook model.

This is of course just a rumor.

Apple could use a product from another company. Or they just might use something designed internally.

Intel has done a commendable job with their mobile processors in the recent years. This was probably the major reason on why Apple switched from PowerPC platform to Intel processors.

Apple owns a chip company named P.A. Semi which they acquired just recently. However, they are said to be working on chips which would be used to power future generation of iPhones and iPods.

Another market rumor is that Apple might use glass touchpads in the next MacBook.