Business Tech

If the speculation about a new MacBook Pro is on the money, the step up to Intel's quad-core mobile technology would have a profound impact on this vaunted line of Apple laptops.

Is a Core i series Apple laptop on the way?

(Credit: Apple)

So, why would Apple adopt a Core i processor in a laptop? The short answer is OS X Snow Leopard. The new operating system is designed to be better at wringing more performance out of multicore processors--and the Core i chips pack four cores.

The long answer is the Core "i" chips themselves. The Core i, a.k.a. "Nehalem," is a brand new Intel microarchitecture brimming with performance improvements over the current Core 2 design.

For starters, the recently announced mobile i7-820QM processor integrates a hefty 8MB of cache memory--compared with the 6MB in the fastest Core 2 Duo that Apple currently offers on the MacBook Pro. Generally, the larger the cache memory, the better the performance.

But Intel has done a lot more than just up the transistor count via a larger cache. While the quad-core i7-820QM is rated at 1.73GHz, a single core can be "overclocked" to 3.06 GHz. Intel does this with a technology dubbed Turbo Boost, which speeds up and slows down individual cores to meet processing and power-efficiency needs, respectively.

Need more convincing? The Core i7 also comes with Hyper-Threading, which can double the number of tasks--or threads--a processor can execute. You won't find that in the Core 2 chips.

Digital media creation also gets a boost. Intel claims up to 81 percent faster video encoding.

And the mobile Core i7 is not a power hog--relatively speaking. The i7-820QM is rated at 45 watts, less than a third of the power envelope of the desktop Core i7. With such a powerful processor, heat would be an issue of course but the 45-watt power envelope is manageable.

That said, there are reports that Apple is not bringing out any more products this year. So, along these lines, alternatively, Apple could opt initially for the upcoming "Arrandale" Core i chips--due by the beginning of next year--that are based on a more advanced 32-nanometer manufacturing process. (Current Core i processors use a 45-nanometer process.)

Arrandale integrates graphics silicon into the same chip package as the main processor--a first for Intel. Because of this high level of integration, Arrandale, however, is a dual-core chip.

But probably the closest thing to a rumored MacBook Pro refresh is the iMac, which has the same space-constrained characteristics of a laptop. The quad-core Core i7 in the new iMac "boosts application performance up to 2x over the previous-generation iMac," according to Apple--and that's what consumers can expect with a Core i series laptop.

During Intel's earnings conference call on Tuesday, CEO Paul Otellini talked about the growth of notebook PCs versus Netbooks, and Windows 7 adoption in business, among other topics.

Otellini was quick to trumpet the fact that its mainstream notebook business beat Netbook growth. "We saw the sequential unit growth rate of notebook processors and chipsets actually exceed the growth rate of Atom processors and chipsets," he said.

Later in the call, Otellini said: "While Atom and Netbooks are important growth drivers for us, our traditional notebook business remains one of the primary drivers of revenue growth and we expect that to continue in the future."

Otellini, again in the call, expanded on this theme, adding that while Netbooks should see significant growth in 2010 over 2009, the notebook market is flourishing. "We're still bullish (on Netbooks) but what we've seen this quarter though is that the notebook market is alive and well and Netbooks are market-additive for Intel and the industry," he said. "Market-additive" is code for an ancillary product, not a mainstream product.

Intel CEO expects more attractive ultra-thin laptops in the coming months

(Credit: Intel )

He also addressed the new category of ultrathin laptops, which are inexpensive laptops--between $500 and $900--that slot in above Netbooks. "The bulk of the units that have shipped to date were single-core versions of the products. Late last quarter, we introduced the dual-core version of those products. You'll see a number of laptops show up in retail with the dual-core versions for the holiday season...more ergonomically designed, thinner, lighter."

Responding to analyst questions, Otellini also addressed Windows 7 adoption in business. "We see a lot of interest at corporations around Win 7 and the new Nehalem-based (PC models)," he said, referring to Intel's new Nehalem-based Core "i" series of processors. "They're made for each other in terms of the performance and power management and security characteristics."

He continued: "I would expect that the (corporate Windows 7) evaluation process will happen over the rest of this year and we'll start seeing corporate purchases on a refresh basis begin in 2010."

Here's a rundown of other comments:

• Consumer segment strong: "The strength in our business remains primarily consumer driven with broad-based demand across all geographies."--Otellini.
  
• Growth phase: Refuting a question about Intel becoming "smaller" next year: "We're finished with the cutting phase of our efficiency efforts and now in the growth phase of that efficiency efforts."--Chief Financial Officer Stacy Smith.
  
• Inventory hubs: At large PC customers, component inventories levels are at roughly half of the peak level late last year and approximately flat throughout 2009. Intel has a better handle on inventories now using a mechanism called inventory hubs. "We hold the inventory for our large OEM customers, who then pull inventory only if needed...This give us increased visibility into real-time production levels."--Otellini
  
• Nehalem server processors: (dual-processor). "It's not so much an upgrade cycle that's driving the volume right now, it's economics of the data center. People are looking at swapping eight to nine older-generation servers for a single Nehalem server."--Otellini.
  

Dadi Perlmutter, executive vice president and general manager for the Intel Architecture Group, speaks Wednesday morning at IDF.

(Credit: Stephen Shankland/CNET)

SAN FRANCISCO--Intel has moved its latest desktop and server chip architecture to the laptop with the announcement of its 45nm Core i7 mobile processor, based on its new Nehalem microarchitecture.

Officially launched at the Intel Developer Forum here Wednesday morning, the chip is initially available in two standard and one Extreme Edition versions. Formerly known as Clarksfield, the quad-core chip combines Intel's Turbo Boost and Hyperthreading technologies.

"It's a 2GHz chip, but with Turbo Boost it can go up to 3.2GHz," said Mooly Eden, vice president and general manager of Intel's PC Client Group. Turbo Boost works by switching off cores when not in use and overclocking the active cores left. "Clarksfield is the best quad-, dual-, and single-core chip," said Eden.

The chips run at 45 watts, 55 watts for the Extreme Edition, and have an integrated memory controller--the first Intel mobile chips in this lower cost, higher performance configuration.

Dadi Perlmutter, newly promoted general manager of the Intel Architecture Group in charge of processors, said next year would see the Westmere 32nm designs in laptops, with the Arrandale processor adding on-chip graphics for another boost in performance and better power savings.

He also said that Intel was working on new security features for laptops. "Working with LoJack and available next year," he said, "we'll have new capabilities that let you send a message to a lost or stolen computer. If you're nice, you can say 'Please return my computer.' Some say 'The data is shredded, and so are you.'"

Intel also unveiled Light Peak, a new optical fiber interconnection technology that it hopes will eventually replace most or all of the current cabling that computer and mobile users have to deal with.

Running at 10Gbps--enough to transfer a Blu-ray movie in under 30 seconds--and with a maximum reach of 100 meters, Light Peak is designed to carry high-definition video, networking traffic, and high volumes of other data at the same time. Capable of scaling up to 100Gbps, Intel says it is planning to have components ready for manufacturers in 2010.

"We know that legacy takes a long time to change," said Perlmutter, "but we're hoping that over time, this one single cable will replace huge amounts of cable." He said that the primary advantage of this wired system for mobile users is that "the amount of connectors you have in the back of your notebook is a limit to how small it can get."

Rupert Goodwins of ZDNet UK reported from San Francisco.

SAN FRANCISCO--Dell is launching its first laptops with Intel's new Core i7 processor for laptops.

The Intel "Clarksfield" Core i7 processor boasts four cores and is the chipmaker's first mobile chip based on its new Nehalem microarchitecture. Most Intel processors will move to this design in 2010.

Dell is trying to take an early lead in embracing the new technology. Dell's flagship product for the mobile Core i7 will be the 15-inch Alienware M15x gaming laptop. Dell is also offering the chip as an option on other laptop models worldwide, including the Studio 15 and Studio 17.

At the Intel Developer Forum today, David Perlmutter, executive vice president and co-general manager of Intel Corporation's Intel Architecture Group, is discussing Intel's mobile Nehalem platform that also includes a future chip codenamed "Arrandale," which will integrate graphics into the CPU, or central processing unit.

The Core i7 is packaged with the Intel PM55 Express chipset--companion silicon that assists the processor in communicating with the rest of the system. Two features that differentiate Core i7 from Core 2 Duo processors (the most-widely-used chips in laptops today) is Turbo Boost and Hyper-Threading. Turbo Boost speeds up and slows down individual cores to meet processing and power-efficiency needs, respectively. Hyper-Threading can double the number of tasks--or threads--a processor can execute.

The Alienware M15x configurations include the Intel Core 920XM CPU and 1GB NVIDIA GeForce GTX 260M graphics chip.

The Alienware M15x will come with Intel's first Core i7 mobile processor.

(Credit: Dell)

The Dell Studio 17 will feature the Intel Core i7 720QM 1.6GHz processor, a 1GB ATI Mobility Radeon HD 4650 graphics chip, 17.3-inch HD+ (1600x900) display, and 9-cell battery.

The Studio 17 starts at $1,099.

Dell will also offer the Studio 15 with Core i7. Configurations include Core i7 720QM 1.6GHz, 512MB ATI Mobility Radeon HD 4570 graphics chip, and 4GB of memory. Pricing start at $999.

And the Dell Studio XPS 16 will come with a Core i7 option, with a starting price of $1,249, Dell said.

I have a few questions to ask at this week's Intel Developer Forum....

Why is Intel using a more expensive chip for the new Core i5 and cheaper Core i7 processors? Why does this new chip--code-named Lynnfield--appear to have features Intel isn't using? What's the connection between Lynnfield and a future Intel chip code-named Jasper Forest?

These questions arose as I've been getting ready for IDF by reviewing recent press releases and news stories about Intel's current and forthcoming products, and chatting with fellow analysts about what we're looking forward to seeing there.

The recent announcements of the Core i5 and new Core i7 processors seemed pretty straightforward. Consider Brooke Crothers' piece on CNET: "Out with the old: Intel makes Core 'i' chips cheap." As Crothers explains, the facts are simple: the new Core i7 800-series slots in under the existing 900-series and replaces some older parts. The Core i5 is a new line, clearly positioned below the Core i7. Features, performance, and prices are all lower. That's as it should be.

But in looking at the coverage on some enthusiast sites, a fact jumped out at me. The Lynnfield chip is 12.5 percent larger than the Bloomfield chip used in the higher-priced Core i7 900-series processors (296 square mm vs. 263 square mm), in spite of the fact that Lynnfield only has two memory interfaces and no QuickPath Interconnect (QPI) link.

The big difference between the chips is the addition of 16 lanes of PCI Express on Lynnfield, but that's only about 80 pins plus the control logic. The changes should have roughly canceled each other out. Maybe one chip would be a little bigger than the other, but not by this much.

Updated at 2:15 p.m. PDT: adding information about Dell system.

The main message of the new Core i5 chip is simple: it's cheap--even cheaper than Intel chips based on older technology.

(Credit: Amazon)

The i5, which brings Intel's new "Nehalem" microarchitecture into the mainstream PC market, immediately makes many, if not most, of the older desktop processors obsolete. Consumers need look no further than pricing on sites like Amazon. The i5-750 lists for $250, while the older--based on Intel's last-generation "Core 2" microarchitecture--Q9650 lists for $319.

The official pricing from Intel in quantities of 1,000 units makes the price gap even more stark: $196 for the i5 and $316 for the Q9650.

"The new Core i7's and Core i5's bring pricing to more mainstream levels, with the Core i5-750 at a 1KU (1,000 units) price of $196, which is well below the Core 2 Quad Q9650 at $316," said Intel spokesman George Alfs.

"We are very serious about bringing all new Core processors to new price points and you'll see this trend continue with Westmere," he said, referring to Intel's upcoming processors based on a next-generation 32-nanometer manufacturing process.

Comparing the old with the new, some consumers might point out that the older Q9650 has, for example, more on-chip memory and a higher clock speed than the Core i5. But the writing is on the wall: consumers will almost always opt for new over old when new is less expensive.

On Tuesday, Dell began offering the Studio XPS 8000 tower with the Core i5 starting at $799 and packing 4GB of "Dual Channel DDR3 memory" and a 500GB hard disk drive, among other features. Adding a 20-inch monitor hikes this to $979.

The message is more muddled, however, for the updated Core i7 processors because they maintain the same "i7" identifier as their predecessors--first launched in November--but offer different features that are not readily apparent to less-sophisticated buyers and potentially vexing for some savvy consumers.

"It gets confusing for the more technically knowledgeable buyer, and for us as system builders," said Kelt Reeves, president of enthusiast PC maker Falcon Northwest. "Buying a Core-i7 950 model? Well then you can have a maximum of 12 gigs (gigabytes) of triple channel memory and you buy your memory in sets of 3 sticks. Buying a Core i7-870? Well then your memory is installed in pairs and the max you can have is 8 gigs," he explained.

Reeves continued. "For instance, if you're a heavy Photoshop user having 12 gigs of the fastest memory might be very important to you," he added, saying in that case a consumer would want to opt for a Core i7 900 series over the newer 800 series.

There are other gotchas too. On the i5 processors a feature called hyperthreading is not included, as CNET's Rich Brown pointed out Tuesday. Hyperthreading effectively doubles the number of tasks--or processing threads--a chip can do. "Heavy multitaskers and those who use multithreaded software will feel the loss here," Brown said.

Updated at 1:30 p.m. PDT: adding information about Core i7, i5, and i3 branding.

Intel's upcoming "Arrandale" will be the first highly integrated chip of its kind from Intel and is expected to run the gamut of laptop designs, from ultrathin to mainstream.

Dell ultrathin Adamo: a category of laptops that will likely use a number of different Arrandale chips

(Credit: Dell)

Due by the fourth quarter, it will be the first Intel product to put two processor cores and a graphics function together in the same chip package. Intel covered the underlying architecture in a presentation at the Hot Chips conference in Palo Alto, Calif., this week and in a recent blog described the design, saying it "will be the basis of all upcoming new Core chips (Core i3, i5, and 7) over the next few months."

Arrandale will come under the Core i3, Core i5, and Core i7 brands, using the chipmaker's most advanced 32-nanometer technology (Intel chips are currently built on a 45-nanometer process) and will populate consumer and business laptops.

The compact chip, however, is not without its challenges. "A high level of integration is always a compromise. There's never a free lunch," said Ashok Kumar, an analyst at investment bank Collins Stewart. "It's a question of how much performance you have to compromise to get that level of integration and low power consumption."

"There won't be a significant jump in performance, but price and power consumption will be lower," said Jon Peddie of president and founder of Jon Peddie Research.

Last month, Japanese-language technology Web site PC Watch published specifications for Arrandale and other upcoming Intel processors that were, PC Watch says, obtained from an OEM (original equipment manufacturer) computer manufacturer. It shows Arrandale coming in mainstream as well as low-voltage and ultra-low-voltage versions. The latter two classes of chips have typically gone into upscale svelte designs such as the Dell Adamo and Apple MacBook Air.

Arrandale-based chips, however, are expected to quickly go downmarket and bring Intel's new Core i "Nehalem" microarchitecture to the new category of laptops called ultrathins, which resemble the MacBook Air and Dell Adamo but are about half the cost.

A separate series of new chips for Netbooks, codenamed Pine Trail, will also appear by early 2010 and feature a high level of integration.

The first Core i7 mobile processors will arrive by September or October. This quad-core series, codenamed Clarksfield, will be for high-end gaming laptops and mobile workstations. (For the codename buffs who actually keep track of these things, Calpella is the platform for Clarksfield, Westmere is the platform for Arrandale.)

Nvidia is readying silicon that would work with Intel's newest processor design, according to a report. Intel claims Nvidia does not have the legal rights to make companion chips for its newest processors.

In February, Intel alleged in a lawsuit that the 4-year-old chipset license agreement with Nvidia does not extend to Intel's future-generation processors with "integrated" memory controllers, such as its "Nehalem" Core i series of processors.

A chipset is companion silicon to the main processor. Integrated memory controllers are built into the processor itself to increase performance between the processor and memory.

According to a report on Chinese-language Technology Web site HKEPC, Nvidia is planning to bring out a MCP99 chipset that supports Nehalem processors and Intel's Direct Media Interface, or DMI. Nvidia cited DMI back in February as a technology that Intel was trying to prevent it from using.

Despite the report's claims, it is not clear yet whether Nvidia would in fact bring out a chip before the legal matter is settled with Intel.

Nvidia had no comment on the report.

Nvidia's current 9400M Intel-compatible chipset, which is used with Core 2 architecture-based processors, has been successful. It is used in Apple's MacBook and Toshiba's Qosmio lines, for example, and in Netbooks that use the Atom processor.

During Nvidia's July 26 earnings conference call, in response to an analyst's question about building chipsets for Intel's Nehalem processors, Nvidia CEO Jen-Hsun Huang said: "We're not necessarily building chipsets for future Intel buses. We've not commented anything on that and so you are just going to have to wait to see what we come up with," he said. "Our company is...pretty darn clever. There is a lot of ways to skin the cat," he said.

Intel said the matter is being left to the courts. "We tried many times to resolve the conflict but we couldn't resolve it. So we asked the courts to," said Intel spokesman Chuck Mulloy. "By the time something comes to market, hopefully we'll have some resolution," Mulloy said.

Updated at 3:45 p.m. PDT: adding comments from earnings conference call.

Intel on Tuesday posted a second-quarter loss of $398 million, stung by a fine imposed by the European Union, but the chipmaker is optimistic about the second half of the year as it beat analyst estimates.

The loss of 7 cents a share compares with a profit of $1.6 billion, or 28 cents a share, reported a year ago. Without the $1.45 billion EU fine, Intel had a profit of $1 billion, or 18 cents per share. Analysts had expected a profit of 8 cents per share.

"Intel's second-quarter results reflect improving conditions in the PC market segment with our strongest first- to second-quarter growth since 1988 and a clear expectation for a seasonally stronger second half," said Paul Otellini, Intel CEO in a statement.

In an earnings conference call Tuesday afternoon, Otellini qualified this statement somewhat, saying that there won't be a "recovery to prior levels."

Revenue was $8 billion, down from a year-earlier $9.5 billion. Revenue from Intel Atom microprocessors, used widely in Netbooks, and chipsets was $362 million, up 65 percent sequentially.

Gross margin, a crucial profit indicator, was 51 percent, up 5.5 points sequentially but down from 55.4 percent posted a year earlier.

The replenishment of inventories by customers was a positive sign, said Stacy Smith, Intel's chief financial officer, speaking during the conference call. "In anticipation of a seasonally up second half, the supply chain (buyers of Intel chips) began refilling inventory positions that had been depleted over the past two quarters," Smith said. "As a result, we experienced better-than-expected demand for microprocessors and chipsets."

"Consumer purchases led the way," Otellini said in the conference call, referring to consumer laptops that saw growth.

Corporate enterprise business, however, was "weak," Otellini said. Though the Intel CEO expects companies to update aging computers, "we're not counting on that in large measure in 2009," he said. Dell executives said Tuesday that global technology spending will likely remain weak for the near term as companies delay computer purchases, according to an AP report.

Otellini said he had "no opinion" on the impact of Windows 7--due later this year--in the consumer market but expected businesses to "get ready for buying next year."

Market researcher iSuppli said Tuesday that for the first time since the Dot-Com bust of 2001, the global PC market will suffer a contraction in unit shipments in 2009, due to a combination of falling IT spending and plunging sales of desktop computers.

Global PC shipments are expected to decline to 287.3 million units in 2009, down 4 percent from 299.2 million in 2008, iSuppli said.

"If you look across the pond in Europe demand is decidedly weak," said Ashok Kumar, an analyst at investment bank Collins Stewart. "And in China all the anecdotal data points are no better than tepid. None of the geographies are firing," Kumar said.