Intel, AMD Set for Notebook Bout

Notebook computers were hot throughout 2005, boasting sales-growth rates that left desktops in the dust. So, it's fitting that the two big PC microprocessor makers will begin the new year by drawing the battle lines around the laptop.

Intel(INTC Quote) will officially launch its new notebook processor at the Consumer Electronics Show in Las Vegas this week. And some industry observers believe Advanced Micro Devices(AMD Quote) could offer details on its own upcoming notebook processor at the event.

With several shifts in the technology landscape coming into play in 2006, each chipmaker is hoping to capitalize on key differences in its mobile processors to take control of the growing notebook market.

"It's really shaping up to be a good battle," says Sam Bhavnani, the mobile electronics and computing principal analyst at industry research firm Current Analysis.

AMD's 64-bit mobile processor architecture could give it an edge as consumers and businesses upgrade to Microsoft's(MSFT Quote) new Vista operating system, expected to launch in the second half of this year. Vista, which is Microsoft's most important operating system upgrade in years, will for the first time process data in 64-bit chunks.

While Vista will still run on computers featuring 32-bit processors, it's expected to be a substantially better experience on 64-bit processors. AMD's Turion processor, which already supports 64-bit processing, will allow people to fully take advantage of the new operating system's power and functionality.

In the past, says Insight 64 analyst Nathan Brookwood, microprocessors with 64-bit architecture for notebooks and desktops were really a nonissue because there weren't any operating systems and applications that took advantage of it. "But this time it might actually sway some buying decisions," Brookwood says.

Intel says it will have 64-bit notebook processors available by the time Vista ships. But its lack of 64-bit processors in the months leading up to the Vista introduction could cost Intel sales if buyers opt for future-proof AMD-based notebooks.