Business Tech

For Nvidia, the success of its widely-rumored Intel-compatible x86 technology is, to put it charitably, uncertain. And comments from an analyst Monday point to marketing challenges.

Amid the rumors about a skunkworks project at Nvidia to develop an x86 technology that would compete at some level with Intel and Advanced Micro Devices, the obvious--though often overlooked--fact is that Nvidia would face multifarious challenges.

A research note Monday from Broadpoint AmTech analyst Doug Freedman (who downgraded Nvidia to "sell") pointed to some of the marketing challenges. Though Freedman says recent actions by the Federal Trade Commission "could open the door to (an) x86 CPU product" from Nvidia, he quickly qualifies this. "We believe investors could be underestimating the effort and timeline as the cost of working with supply chain partners is much greater than presently accounted for in NVDA's spending model," he wrote.

The note continues. "We do not believe a product that is mainstream in performance would sell well given that the Nvidia brand is not as well-known outside the high-end gamer community or the investment community. A major media push would be required for mainstream success," Freedman wrote.

This presumes, of course, that the company could overcome the Everest-like development (and legal) hurdles. And it isn't known yet what form an Nvidia x86 chip would take and how it might be used by the company. "Until I know what type of product they are working on and it's target market, I can not comment on chances of success," said Freedman in response to an e-mail query.

But this much can be said: the challenges for any x86 "clone" maker that goes head to head with Intel are self-evident. Look no further than AMD--the most "successful" Intel rival--which after teetering on the edge of bankruptcy for a couple of years almost imploded in 2008.

Updated at 5:30 p.m. PST: throughout.

Advanced Micro Devices processors will soon be available in two upcoming ThinkPad models, breaking Intel's longtime monopoly on Lenovo's notebook line.

Having acquired the ThinkPad line through its acquisition of IBM's PC business in 2004, Lenovo said in separate statements e-mailed Monday that the ThinkPad X100e and the 13-inch version of the new ThinkPad Edge series will carry AMD processors.

An ultraportable PC positioned between a notebook and a Netbook, the ThinkPad X100e can be equipped with AMD's Athlon Neo single-core and dual-core, as well as the Turion dual-core processors. The ThinkPad Edge model, the smallest of three offerings in this product family and targeted at small and midsize businesses, may be paired with dual-core AMD Turion and Athlon Neo processors. The 14-inch and 15-inch ThinkPad Edge versions will still be powered by Intel's Core 2 Duo chips.

Read more of "AMD marks entry into Lenovo ThinkPads" at ZDNet Asia.

Thought that the newest laptop technology is always priced at a premium? Think again. Due in the next few weeks from Hewlett-Packard, Toshiba, Gateway and a host of other PC makers, some of the first laptops using Intel's new Core i3 processor will be priced as low as $700.

At the Consumer Electronics Show, which starts January 7, PC makers will debut laptops using Intel's freshly minted Core i3 processor, as was previously reported. Core i series processors are based on Intel's Nehalem microarchitecture. In 2010, the chipmaker will move most of its processor lines from the current Core 2 technology to the Core i design.

Core i3-based laptops are, in a word, cheap. Cheap in the context that these are systems using a brand new processor based on a new Intel microarchitecture--in the past, this kind of technology has commanded a steep premium. A system from HP now posted on online retailer eCost is priced at $865. And a Gateway laptop listed on Canadian retailer Future Shop is priced at $730 Canadian dollars or about $694 U.S. dollars.

And add a Toshiba system to the mix (priced at $799 Canadian dollars or about $763 U.S. dollars). The Toshiba Satellite (PSLS6C-00F005) packs the same Core i3 processor but uses a 16-inch screen, according to a posting on Future Shop.

HP Core i3-based Pavilion laptop (WA786UA#ABA) as listed by eCost:

• Processor: 2.13GHz Intel Core i3-330m
  
• Display: 15.6" LED
  
• Memory: 4096MB DDR3
  
• Hard disk drive: 320GB 7200rpm
  
• Optical drive: DVDRW
  
• Operating system: Windows 7 Professional 64-bit
  
• Video card: Intel Integrated Graphics Media Accelerator HD
  
• Price listed by eCost: $864.99
  

The $694 Gateway system has the same screen size (listed with a 1600 x 900 native resolution) and memory configuration as the HP laptop but ups the ante with a 500GB hard disk drive and, most interestingly, uses an as-yet-unannounced ATI Mobility Radeon HD 5470 graphics chip instead of Intel's graphics silicon.

Product specifications aside, one of the most anticipated laptop technologies at CES this year is Arrandale, the codename for Intel Core i series mobile processors targeted at the mainstream laptop market. The Arrandale-based Core i3 is the first mainstream Intel laptop processor to combine two processor cores and a graphics function together in one chip package (previously, the graphics chip was in a separate chipset), resulting in better overall power efficiency.

And the new built-in graphics technology will offer better graphics performance than current technology, according to Intel. The chipmaker will try in earnest to prove this at CES with plenty of demos showing off Arrandale's graphics prowess. (Though not all PC makers are convinced that Intel's new graphics technology is the way to go, as evidenced by Gateway's decision to use a discrete ATI graphics processor from Advanced Micro Devices).

One thing worth noting is that the Core i3 won't ... Read More

If the Apple tablet emerges as expected, this will be another big device market, following media players and smartphones, that the PC industry cedes to Apple.

The writing is already on the wall already for Microsoft and smartphones, as spelled out in a previous post and as documented in shrinking market share numbers.

That's not to say that Microsoft, Compaq (later Hewlett-Packard), and Intel didn't have a chance. Remember the Compaq iPAQ PDA that debuted way back in 2000, powered by an Intel StrongARM chip running an early version of Windows Mobile?

That device had a lot of potential. The operative word being "potential." An iPAQ could have been an iPhone. Or at the very least an iPod. And everybody could be drooling over iPAQs today instead of iPhones. Or using iPAQs instead of BlackBerrys. But of course things didn't turn out that way.

Fast forward to 2010 (January?). Apple announces a tablet and suddenly everyone wants a tablet. (Or iSlate, if you will.)

And what have Microsoft, Intel, HP, and others been offering in the interim years when they had every opportunity to come out with a blockbuster tablet? Unattractive, bulky, half-baked convertible laptops that, let's put it this way, have not taken the PC market by storm.

So, here's the $64,000 question, uh, make that the $64 billion question. Why can't the combined R&D smarts, market clout, and overall technological resources of Microsoft-Intel-HP-Dell come up with a thin, sexy compelling tablet and/or media pad that will turn heads and convince the unbelievers (the average why-would-I-need-something-like-that consumer) that a tablet is a must-have product?

Answer: Because Apple will.

Here's a not unlikely scenario. Apple brings out the tablet/media pad, wows U.S. (and world?) consumers, sells a ton of units, Microsoft-Intel-HP-Dell follow suit with slavishly copied devices that don't sell very well comparatively.

That's how the market for successful newfangled devices works these days. Apple creates the market and everyone else follows in a panic.

Then there's the Intel factor. Intel also wants to be a player in this space. But Intel and its coterie of PC makers can't get off the traditional-design laptop gravy train. Plus, as formidable a chipmaker as Intel is, it is still behind the Qualcomms and Texas Instruments of the world in building the power-efficient system-on-a-chip silicon that goes into smartphones and will likely go into tablets.

So, here's my question for Intel et al: How many people will be buying Netbooks or Intel-based MIDs (mobile Internet devices) in 2011 if Apple has a more compelling alternative? Answer: a lot less if the Apple tablet exists.

And add Asia-based device makers offering tablets using an Nvidia Tegra 2 chip to that. A number of these tablets are expected too in 2010. In fact, Nvidia is already doing what Intel should have finished doing a long time ago: make a competitive system-on-a-chip that powers small devices. Intel had the chance to make XScale (what StrongARM eventually became) into something big for small devices six years ago. But it didn't. And now Intel is trying to reinvent the wheel by squeezing the upcoming "Moorestown" Atom chip into smartphones.

Intel, I'm sure you think Moorestown is a great idea, but it's a little late. Apple beat you to it by about three years.

Consumers who want to watch high-resolution HD video on Hulu on the newest crop of Intel-based Netbooks will have to seek out models equipped with special chips from Broadcom or Nvidia.

Though Intel announced a major makeover of the Atom processor Monday, it's still not powerful enough to handle the highest resolution video.

For playback of high-resolution HD video--such as 1080p--Intel has "validated" an additional Broadcom chip that Netbook suppliers can include in systems, according to Anil Nanduri, director, Netbook Marketing at Intel.

Not coincidentally, on Monday, Broadcom announced the BCM70015 Crystal HD chip for high-resolution video playback. The chip will provide software support for Adobe Flash Player (v10.1) and Windows Media Player (v12), the company said.

The catch is that a consumer will have to confirm whether a new Netbook comes with the Broadcom chip. If the past is any indication, the chip will not be widely available on Netbooks, though Intel's Nanduri added: "I believe there will be some (systems) using that chip." The playback of the lower-resolution 720p HD variety is possible on Intel-only Atom silicon, according to Nanduri.

And there's another, even higher-end option for HD video playback: Netbooks equipped with the new Intel processor and Nvidia's Ion graphics chip. "With Ion you'll be able watch Hulu HD or YouTube HD at either 720 or 1080. With standard Intel components without Ion you won't be able to do that," said David Ragones, product line manager at Nvidia, disputing Intel's claim that the Atom processor can do 720p video playback.

"Another category is Blu-ray video," Ragones said. "If you want to watch the latest Blu-ray movie that just came out, you can absolutely do that on an Ion Nebtook," he said.

Nvidia's Ion also supports gaming, a feature that sets it apart from the Broadcom chip.

New Netbooks with the Nvidia Ion chip will be demonstrated at the Consumer Electronics Show in Las Vegas in January.

Intel is launching the biggest makeover of the Atom processor since the seminal chip debuted in the spring of 2008, and consumers can expect a crush of new Netbooks to follow.

As previously reported, Intel's latest N450 processor and NM10 Express chipset--technology that had been previously referred to as "Pine Trail"--will be used in a new raft of Netbooks that will debut at the Consumer Electronics Show in January. Hewlett-Packard, Acer, Dell, Asus, Toshiba, Lenovo and others are expected to either announce new systems before the show or exhibit new models there.

Intel said there will be more than 80 new Netbook designs--typically priced around $350--on the way, with systems coming available by January 4.

The Pine Trail design squeezes the graphics function, previously on a separate chip, onto the central processing unit, or CPU, a first for Intel. The result--by decreasing the number of chips from three to two--is a reduction in the overall chip package size by 60 percent.

"This is the first monolithic processor with the graphics built in and the memory controller built in," said Anil Nanduri, director, Netbook Marketing at Intel, in an interview. The size of the accompanying NM10 "I/O" chipset has also been reduced, Nanduri said.

To the consumer this means better battery life and thinner designs. "We'll see sleeker designs coming into the market and longer battery life," said Nanduri, adding that average power consumption has dropped 20 percent over the previous generation of Atom technology.

"We got more than eight hours of battery life out of this system," said CNET Review's Dan Ackerman, after testing the new Asus Eee PC 1005PE Netbook, which is equipped with the updated Atom silicon.

Atom-based systems will be sold primarily with Windows 7 Starter or Home Basic. "These are the ones that hit the right price points," Nanduri said. "The kind of applications you load up as you go into Home Premium--with a much more richer experience--more performance is needed for that," Nanduri said, referring to higher-price Windows Home Premium.

Windows XP Home and Intel's Moblin Linux operating systems will also be supported. Moblin offers some benefits over Windows. "You will get a very snappy experience on Moblin and faster boot times because it's very purpose-built for this category," Nanduri said.

Intel expects robust growth ahead for Netbooks. Nanduri cited numbers from ABI Research that show Netbook annual shipments reaching ... Read More

The Federal Trade Commission needs to do a better study of Intel and chip the market before it pulls the trigger with a veritable scattershot of last-minute accusations.

In addition to the FTC's litany of charges against Intel relating to the chipmaker's alleged anticompetitive behavior in the central processing unit, or CPU, market for PCs, the FTC document also refers to "Intel's unfair methods of competition...and future competition in the relevant GPU (market)." GPUs, or graphics processing units, and CPUs comprise the two main processors in all PCs.

A more thoughtful, studied, and contemporaneous analysis by the FTC would reveal that future personal computing markets are not so much about graphics chips--which is the basis of its new found emphasis on Nvidia as the object of Intel bullying and misbehavior--but about small mobile devices. And here Intel faces a raft of competition and is at least a year behind its rivals.

And that includes Nvidia, whose tiny Tegra processor is already in the Microsoft Zune HD and the Samsung M1 and whose next-generation Tegra 2 chip will be in dozens more handheld devices and smartphones. Intel's current offerings in this space? Zero.

Nvidia's Tegra processor is based on the same ARM design that other competitors use such as Qualcomm, Texas Instruments, Samsung, Apple, and Freescale Semiconductor use. And which Nvidia's CEO Jen-Hsun Huang said is expected to account for half of Nvidia's business in a few years.

Unbelievably, the only reference to ARM in the FTC complaint is: "Another example of a non-x86 microprocessor architecture is ARM. ARM is used primarily in handheld devices and mobile phones." One sentence in a 20-plus page document seems oddly dismissive, as though ARM was practically irrelevant to future chip market competitive dynamics as relates to Intel. Especially when you look at it in the context that that FTC is referring to the world's most popular consumer chip architecture--that is, ARM.

How large is this exploding market today? The ARM processor market totaled well over 2 billion units shipped in 2008. The "x86" PC chip market, where Intel and Advanced Micro Devices compete, a fraction of this--a few hundred million.

"The growing market is...a whole swath of interconnected devices and Intel doesn't have much a presence there," said the CEO of ARM Warren East in an interview I had with him recently in Los Angeles. And he accurately asserted that ARM can either match or exceed Intel in market clout and spending because it works, to some extent, in concert with the manufacturers--like TI, Nvidia, Samsung--that collectively have a massive revenue stream to tap into for marketing and research and development. "Well, actually there's about $25 billion of ARM semiconductor revenue coming in through the front door. So, it isn't Intel versus ARM, it's Intel versus everybody else," he said.

And if there is any truth to the Google Netbook rumors, ... Read More

(Updated at 1:56 p.m. PST, after I put down my own bottle of Lapin Kulta.)

If you've ever spent a long night drinking with Finns, you may have noted that after the 10th beer, they can become jolly, effusive, and positively inventive. Well, please hark the words of Martti Roth, an alleged employee of Intel Finland, who thought of something rather special while under the influence of alcohol.

I am not libeling him, truly. Because Roth says he really did come up with the notion, while at a bar, that he and his Intel friends should create the world's biggest Intel chime ever by firing themselves out of cannons.

On the special Intel Cannonbells site, Roth declared: "I thought about the biggest, most exciting way we could create those five notes. And the longer I stayed in the bar, the more sense it made."

Roth says he is a field applications engineer. And his family has a history with cannons. No, not in some 19th century war, but, well, it sounds like a tragic story.

"In 1906, my great grandfather tried to fire himself from a cannon over the widest part of the river Vantaa in Helsinki," Roth said on the site.

I cannot imagine why he might have made this interesting choice. In answer to the question "did he make it?" Roth replied: "Some of him did. Funny really, but on the day [of the Intel Cannonbells launch], I really felt as though he was looking down on me and guiding me through the air towards that big, metal pipe. It was very emotional."

I cannot possibly suggest that Roth did this interview when still under the influence of the finest Lapin Kulta (supposedly Finland's finest beer). Or that, as some (including the site's disclaimer writers) might suggest, he is merely an actor.

Oh, all right, here's the full, tucked-away disclaimer: "All copy and videos are part of a marketing campaign for Intel Sponsors of Tomorrow. No Intel employees were harmed in the making of this film. All characters featured in the videos were played by actors specially trained in silly costumes and Finnish accents. Do not, under any circumstances, attempt to fire anyone out of a cannon."

Still, I trust that the video will inspire you to aim higher in the coming year to create technological feats that will truly make a noise in the commercial world. Even if it might make you mistrust Finns a little in the immediate future.

Microsoft and Intel this week are finding themselves on opposite sides of antitrust favor, while Facebook may find itself in the crosshairs.

Microsoft and the European Commission have settled their differences over the choice of Web browsers in Windows. As part of the settlement, Windows PCs sold in the European Economic Area will now present users with a Choice Screen, allowing them to install alternative browsers beyond Internet Explorer.

The Choice Screen will offer users the ability to install up to 12 of the most widely used Web browsers that run under Windows. The choices will include the more widely known browsers, such as IE, Apple's Safari, Google's Chrome, Mozilla's Firefox, Opera, and AOL's browser, and lesser-known products including Maxthon, K-Meleon, Flock, Avant Browser, Sleipnir, and Slim Browser.

Microsoft initially proposed stripping a browser out of Windows 7 entirely, a move first reported by CNET. Both competitors and the EU balked at that idea though, instead favoring some sort of ballot screen. Microsoft eventually relented, though the company and its rivals have gone back and forth for a while over the details.
•  Microsoft top lawyer: EU deal opens new chapter

FTC sues Intel over 'anticompetitive tactics'

The agency says Intel has robbed consumers of both choice and innovation in microprocessors, "running roughshod over the principles of fair play."
•  FTC wants Intel to mend its ways
•  Graphics chips a new legal front for Intel
•  Nvidia CEO: FTC action 'transforms' industry

FTC may enter latest Facebook privacy debacle

Scattered griping about the social network's new privacy policies could turn into a firestorm, as EPIC complains about the decision to push more member content public.
•  FTC's new strategy: Kick 'em when they're down

More headlines

Microsoft: We did copy Plurk's code

The software maker says that an investigation shows that the Juku microblogging application on MSN China did swipe code from a rival.
•  Plurk holding Microsoft's feet to code-copying fire
•  Start-up claims Microsoft China took its code
•  Microsoft investigating charges it stole rival's code
•  Microsoft pulls China blog site amid code-theft charges

787 Dreamliner takes to the sky

After two years of delays, Boeing's new plane finally got off the ground Tuesday. Its first flight was witnessed by thousands of company employees and excited fans.

Google phone looks 'supersharp'

After Google distributes its Android phone to employees to test, CNET gets a look. The slick-looking unlocked HTC "mobile lab" device runs the Android 2.1 operating system.
•  Inside the Google phone: A 'snappy' chip

Facebook sues men for allegedly phishing, spamming

Facebook's latest lawsuit accuses three men of getting access to Facebook user accounts by phishing and then sending spam from their accounts.
•  Facebook's audience is diverse--carve it up, advertisers
•  How to hide your Facebook friends list
•  Russian firm DST on a roll, upping stake in Facebook?
•  Facebook helps reunite woman with her rescuers
•  Forgot your anniversary? Facebook's got it covered

Firefox, Adobe top buggiest software list

Open-source Firefox reports all holes, putting it at the top of the list for bug reports, while Adobe replaces Microsoft in the second spot, reports find.
•  Adobe to patch zero-day Reader, Acrobat hole
•  Firefox 3.6 beta released

Study: The road ahead for electric cars

Decisions made in 2010 will play a crucial role in shaping how consumers and the auto industry adopt all-electric and hybrid vehicles.
•  Struggling Saab finds partner on electric vehicles
•  Yet another hybrid supercar
•  Plugless power is coming

Also of note
•  Biden to unveil $2 billion in broadband grants
•  Windows 7 leaving Redmond's help desk less busy
•  PC shipments turn positive in third quarter