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.
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.
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.
Intel on Tuesday said it will ship a server chip that contains up to eight processing cores later this year, while IBM showed off a high-end server in the works that uses eight such chips, yielding 64 cores.
Intel's Nehalem-EX architecture supports up to eight processors and each processor can integrate up to eight cores.
(Credit: Intel)Intel's Nehalem-EX processor, in production later this year and expected to be shipping in high-end server systems by early 2010, will feature up to eight cores inside a single chip that supports 16 threads, according to Boyd Davis, Intel's general manager of the Server Platforms Marketing Group, speaking at a teleconference on Tuesday.
Using threads, Intel essentially doubles the amount of work that can be done on each processing core.
IBM, which participated in the conference, discussed a server currently under development that uses 64 Nehalem-EX cores (eight processors) and can handle 128 threads, according to Alex Yost, vice president IBM BladeCenter. "We're very excited today to be the first to demonstrate Nehalem-EX," Yost said.
Nehalem-EX will also double the memory capacity with up to 16 memory slots per processor socket, and offer four high-bandwidth "QuickPath" Interconnect links.
Intel also said the currently-shipping Nehalem server chip is making market gains. Intel's currently-available Xeon 5500, the first server processor based on Intel's Nehalem architecture, will be "greater than half of shipments" for Intel's high-volume two-processor (aka, "two-socket") server shipments by August, according to Davis.
"Customer acceptance has been quite strong," Boyd said. "From an introduction at the very end of March to representing the majority of our shipments in the market for two-processor servers by the August time frame," he said.
Intel showed off a prototype server that can accommodate four eight-core Nehalem-EX processors.
(Credit: Stephen Shankland/CNET)
Intel's prototype Nehalem-EX server accommodates eight of these memory cards. They'll use relatively conventional DDR3 memory rather than the FB-DIMM technology Intel's current Xeon 7300 systems.
(Credit: Stephen Shankland/CNET)Updated at 10:00 a.m. PDT with correction about launch of Nehalem-EX processor.
Intel is expected to announce details of an 8-core processor for the high-end server market next week.
The chip itself will not actually ship in systems until late 2009 or early 2010.
The 8-core "Nehalem-EX" Xeon processor is designed for servers that can use more than two processors (referred to as "sockets" in server argot). Currently, Intel is shipping Nehalem Xeon processors for servers with two sockets.
Nehalem is the same architecture used in Intel's Core i7 desktop processor line.
The Nehalem-EX is expected to become Intel's top-line Xeon processor. Currently, the six-core "Dunnington" processor, based on Intel's older Penryn architecture, is Intel's highest-performance chip for multi-processor servers.
Nehalem-EX packs 2.3 billion transistors and its eight cores are capable of executing 16 threads (or tasks) at the same time. The chip also has "integrated power gates" for lowering power-consumption.
The announcement of details is slated for May 26. Boyd Davis, Intel's general manager of Server Platforms Marketing Group, will host the roll-out event and "discuss how this new server product raises the standard in cost-effective RISC replacement solutions," according to an Intel note about the event.
Select processors from Advanced Micro Devices do not support Windows 7 "XP mode" though, like Intel, the vast majority of shipping processors do support XP mode.
Microsoft describes XP mode on its Web site as follows: "As part of the upcoming Windows 7 Release Candidate milestone, Microsoft will release a beta version of Windows XP Mode, which allows users of Windows 7 Professional and above to launch many older Windows XP productivity applications directly from their Windows 7 desktop. The Windows XP Mode stand-alone feature is specifically designed to help small businesses that are using Windows XP applications move to Windows 7. For larger businesses, Microsoft Enterprise Desktop Virtualization (MED-V) MED-V 2.0 builds on top of Windows Virtual PC and provides centralized management of Windows XP Mode. MED-V 2.0 will be available in beta within 90 days of general availability of Windows 7."
"All CPUs AMD is currently shipping, except Sempron, include AMD-V and therefore support XP mode," an AMD spokeswoman said Wednesday.
AMD also cited processors that are not necessarily shipping currently. "With the exceptions of Sempron-branded processors and Turion K8 Rev E processors, all notebook processors shipped by AMD include AMD-V and therefore support Windows 7 XP mode," AMD said. "With the exceptions of Sempron-branded processors and pre-Rev F Athlon branded processors, all of the desktop processors shipped by AMD include AMD-V and therefore support Windows 7 in XP mode."
And Opteron processors: "Also, all AMD Opteron processors shipped by AMD from Rev F forward include AMD-V," according to AMD.
A quick search on Best Buy's Web site turned up very-low-end systems that use the Sempron processor. For example, a $329.99 Acer desktop is currently being sold with a Sempron processor. And on Hewlett-Packard's Web site, an HP Compaq dx2450 Microtower (starting at $329), for example, can be configured with a number of different Sempron processors.
Dell has sold laptops, such as the Latitude D531, with AMD Mobile Sempron processors.
An earlier Nanotech: The Circuits Blog post cited Intel processors that do not support XP mode. Intel spokesman Nick Knupffer asserts this won't be a big issue. "Having VT (Virtualization Technology) on these consumer laptops is not going to be an issue--because the consumer versions of Windows 7 (Starter, Home Basic, and Home Premium) do not include Windows XP Mode," he writes.
Updated on May 6 at 6:35 p.m. PDT with additional comments from Intel.
A small brouhaha is erupting over Windows 7 and Intel processors. The hubbub is centered on which Intel processors will not support "XP mode" in Windows 7 and, by extension, which PCs will not support XP mode. Retail laptops may be one of the most prominent segments affected.
Sony Vaio laptops sold at retail stores are among a number of models from a variety of PC makers that have processors that don't support Windows 7 XP mode
(Credit: Best Buy)What is XP Mode? Here's how Ina Fried of CNET News describes it: "XP mode consists of two things, the Windows Virtual PC engine and a licensed copy of Windows XP Service Pack 3 as a packaged virtual machine. Although neither piece will be included in the Windows 7 box, XP Mode will be a free download for those who have a license to Windows 7 Professional, Windows 7 Enterprise, or Windows 7 Ultimate."
XP Mode (XPM) is aimed at businesses that have Windows XP-specific applications that they need to run on Windows 7. XPM allows XP applications to run seamlessly on Windows 7, according to Microsoft. The catch: Intel processors must have Virtualization Technology, or "Intel VT," in order to run XPM. (I won't cover Advanced Micro Devices processors here but will address AMD in a later post.)
Ed Bott's Microsoft Report says that "some of the most popular PCs on the market today...won't be able to use the vaunted Windows XP mode in Windows 7."
Bott lists Intel desktop and mobile processors that will and will not support XP Mode here and here, respectively.
Intel mobile processors may be the most problematic in supporting XP mode; not because of the raw numbers--most newer Intel mobile processors do, in fact, support Intel Virtualization Technology--but because a disproportionate number of those that do not have VT (and therefore don't support XP mode) are laptops sold at retail. (And, undoubtedly, some small businesses purchase laptops at retail.)
In the Core 2 mobile camp, the P7350/7450, the T5200/5250/5270/5300/5450/5470 series, and the T6400/6570 do not support VT, according to Bott's blog. And this can be confirmed on Intel's Web site.
A quick glance at Best Buy shows a somewhat lengthy list of laptop SKUs (models) with, for instance, the T6400 (non-VT) processor. The list includes Dell Studio, Toshiba Satellite, HP Pavilion, Sony Vaio, Asus, and Gateway laptops.
In the $600 to $899 laptop range, I found about 30 different SKUs with T6400 processors, though it should be noted that some of these SKUs are simply models with slightly different configurations.
And a quick search on CNET Shopper turns up a number of consumer models with the T5270. The point? To state the obvious, consumers will have to verify which processor their laptop has.
In an Intel blog, Nick Knupffer asserts this won't be a big issue. "Having VT on these consumer laptops is not going to be an issue--because the consumer versions of Windows 7 (Starter, Home Basic, and Home Premium) do not include Windows XP Mode," he writes.
And Intel, in a statement, had this to say. "Intel introduced its Virtualization Technology in 2005 and has shipped over 100 Million chips with the feature. Windows XP Mode is targeted for business customers. It is available on the mid to higher end versions of Windows 7 and is supported in hardware by many Intel processors."
Intel continued: "Intel vPro technology PCs are required to have an Intel VT capable CPU and Intel VT capable BIOS. They are the best platforms for testing and deploying Microsoft Windows Virtual PC and Windows XP Mode."
Advanced Micro Devices' server roadmap is solid but its mainstream mobile lineup is languishing.
AMD's six-core "Istanbul" processor release was moved up to June
(Credit: AMD)First, the good news. These days AMD is walking the talk. This is a radical change from the AMD of 2007-2008, which always seemed to have a hopper full of Intel-vanquishing paper processors that, if they did materialize, disappointed.
Fast forward to AMD's Tuesday earnings announcement, when the company said it was actually moving up the introduction its most sophisticated processor, the six-core Istanbul, to June.
And AMD has proved its silicon mettle at large server customers such as IBM and Sun Microsystems--the latter's executive vice president John Fowler had nothing but praise for AMD processors in high-end Sun server systems.
In a "Global Webcast" on server technology Wednesday, Patrick Patla, a vice president in AMD's server and workstation business, revealed a strong roadmap, saying that 8- and 12-core "Magny-Cours" processors will appear in 2010. "We're currently working on new processors which we expect will deliver more than 35 times the performance of the original single-core AMD Opteron processor released in 2003," Patla said in a statement.
Intel, of course, will also bring out many-core processors, but AMD is keeping pace, and, according to people who should know, like Sun's Fowler, maybe more than keeping pace.
Now, the bad news. This post today on CNET's Crave blog says it all: "One of our biggest issues with HP's Pavilion dv3z was its AMD processor, keeping it from beating out the performance of comparable 13- and 14-inch laptops with Intel Core 2 Duo CPUs." This is, by no means, the first review that expresses this sentiment. In short, AMD mobile platforms consistently come up short in the high-profile, burgeoning laptop market. Will AMD close the gap in 2009?
Maybe one answer to that question is AMD's Neo chip that powers the low-cost, ultra-thin HP Pavilion dv2 laptop. More than a Netbook but less than a mainstream laptop, this kind of sleek mobile device could eventually eclipse the high-end Netbook segment.
AMD CEO Dirk Meyer said Tuesday that the single-core Neo processor will get a dual-core sibling dubbed "Congo" by summer. A dual-core processor in this low-cost, MacBook-Air-for-the-masses category is a compelling proposition. AMD needs to stay ahead of the game, especially when Intel brings out chips for this category in the May-June timeframe.
