This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Intel CFO: We Will Reinvent PCs

Stocks in this article: INTC

NEW YORK ( TheStreet) -- Intel (INTC), which provides low-power chips for a new breed of skinny laptops called ultrabooks, said it's reinventing the PC market, according to the chipmaker's CFO, Stacy Smith.

Speaking at the Citi Technology Conference in New York City, Smith pointed to previous Intel milestones such as adding multimedia capabilities to PCs in the 1990s and the launch of its Centrino chip, which enabled longer battery life and thinner laptops. "We will re-invent the PC one more time," Smith said. "We will make the ultrabook form factor very sexy."

Smith explained that ultrabooks, expected to debut in time for the holiday buying season, are thinner and lighter than existing notebooks, and also offer long battery life. Ultrabooks will also feature "instant on," "always connected," location-based services and touchscreen capabilities.

"We will also have the ability to have a flipscreen," he said. "That's not going to happen in 2011, but over time -- that's how we're going to evolve the platform."

Intel outlined its plans to build low-power chips for ultrabooks at the Computex show in Taiwan earlier this year, predicting that the devices will account for 40% of the consumer laptop market by the end of 2012. Ultrabooks, a cross between notebooks and tablet devices, will measure less than 20 millimeters thick.

Intel, however, has been down this road before. CEO Paul Otellini cited super-skinny laptops running low-power chips as a key trend more than 2 years ago, but the high production costs and thus high price tags hindered mass adoption of the technology. Today Intel says an ultrabook will be priced below $1,000.

Smith reiterated this message Wednesday. "We think that that will really re-energize the notebook marketplace," he added.

The Intel CFO also predicted that two-thirds of the PC market's future growth will come from emerging markets. Falling PC prices and higher incomes in countries such as China are fueling demand for technology, he explained, noting that a computer cost more than 30 weeks of the average Chinese worker's income in 2005, compared to around 7 weeks worth of income in 2010.

"Now that it's less than a couple of months of income for someone to afford a computer, there's rapid uptake," he said. "We're already seeing rapid increases in penetration rates across these markets."

Intel shares were rising modestly in Wednesday morning trading, up 2.36% to $20.

--Written by James Rogers in New York.

>To follow the writer on Twitter, go to http://twitter.com/jamesjrogers.

>To submit a news tip, send an email to: tips@thestreet.com.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,814.94 -2.96 -0.02%
S&P 500 2,067.03 -2.38 -0.12%
NASDAQ 4,758.2520 +3.36 0.07%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs