Intel Corp (INTC)

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Compal: Centrino unlikely to penetrate consumer market this year

http://www.digitimes.com/NewsShow/Article_print.asp?datePublish=2003/02/12&pages=PR&seq=206

Wednesday 12 February 2003
Compiled from outside sources; Sarah Chang, DigiTimes.com

Ray Chen, president of Compal Electronics and Compal Communications, predicts that Intel’s Centrino mobile technology is unlikely to penetrate the consumer market this year unless its unit price can cut to US$100, the Chinese-language Commercial Times reported.

Intel has informed Taiwanese notebook makers that it will quote Centrino mobile technology, its new brand name for a Pentium M processor, 855 family chipset and wireless network connection, at around US$200, Chen revealed.

Chen believes that such a price would limit Centrino to only corporate users, with Centrino-based notebooks having to be sold at US$1,500-1,900 to be profitable. To penetrate the consumer market, notebooks must be priced below US$1,500, with a corresponding price for Centrino of around US$100, said Chen.

With the consumer market accounting for around half of the total notebook market, Intel should lower Centrino’s price to stimulate notebook demand, Chen stated.

Compal’s Centrino-based notebooks, all aimed at corporate users, will ship in the second or third quarter, said Chen.

[Thanks to mmattheych on Yahoo]