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Intel bets big on thin PCs and phones at Las Vegas show

By Noel Randewich | Reuters 11 hrs ago

Reuters/Reuters - Kirk Skaugen, vice president of PC client group for Intel,

speaks at an Intel news conference during the Consumer Electronics Show (CES)

in Las Vegas January 7, 2013. REUTERS/Steve Marcus

LAS VEGAS (Reuters) - Top chipmaker Intel Corp on Monday announced shipments of

a new low-power chip and showed off next-generation ultra thin laptops and

convertible tablets in its latest bid to prove that the struggling PC industry

still has a bright future.

At the 2013 Consumer Electronics Show in Las Vegas , Intel said new

energy-efficient processors for tablets and laptops are available now, and it

outlined features like voice recognition and drastically improved battery life

on future PCs.

"Absolutely all-day battery life where you just don't have to bring your power

brick at all anymore," Kirk Skaugen, corporate vice president and general

manager of Intel's PC Client Group, said of laptops built with the company's

upcoming Haswell processor.

While macroeconomic troubles have weighed on sales for several quarters, the

growing popularity of tablets and smartphones is seen as an existential threat

to the PC industry.

Anxious to breathe new life into PCs and prove a recent slump in sales is not

permanent, Intel and PC manufactures in Las Vegas this week will display a

range of ultra thin laptops, dubbed Ultrabooks, and hybrid devices that convert

into tablets.

On a stage flanked by dozens of tablets and laptops with rotatable and

detachable screens, Skaugen said Intel's newly available chip based on its

current Ivy Bridge architecture sips just 7 watts of energy, more efficient

than a previously planned 10 watts of power.

NO-EXCUSES PHONE

The Santa Clara, California-based company has long been king of the PC chip

market, particularly through its historic "Wintel" alliance with Microsoft

Corp, which led to breathtakingly high profit margins and an 80 percent market

share.

But it has struggled to adapt its powerful PC processors for battery-powered

smartphones and tablets, a fast-growing market led by Qualcomm Inc, Samsung

Electronics Co Ltd, ARM Holdings Plc and others.

Mike Bell, who co-heads Intel's mobile and wireless business, introduced a new

processor platform, code named Lexington, targeted at low-priced smartphones in

emerging markets like Latin America and Asia.

"It's designed to be a no-excuses multimedia phone," he said.

Acer, Safaricom and Lava have already agreed to use the new chips in future

phones, Bell said.

A handful of manufacturers and telecom carriers in Europe and Asia have already

launched smartphones using Intel's Medfield processors this year. Google's

Motorola Mobility in September launched the Razr i in Europe and Latin America

as the first handset of a multi-device agreement between the two groups.

But Intel is fighting an uphill battle in a market where chips made using

technology from ARM Holdings have become ubiquitous. Intel also has yet to

release a chip for 4G telephone networks, keeping it out of the running for

major smartphone design wins in the United States.

Sales of smartphone processors soared 58 percent in the third quarter, but

Intel had just 0.2 percent of that market, according to a recent report from

Strategy Analytics.

By comparison, worldwide PC shipments fell 8.6 percent in the third quarter,

according to IDC.

Intel said 3D cameras would be integrated in future Ultrabooks to allow

consumers to use gestures and facial recognition to control their devices.

Upcoming Ultrabooks will also include voice interaction, Skaugen said.

"We're basically going to give the PC the same human senses we've all had," he

said.

Intel and other tech companies are increasingly looking for ways to let PCs and

other devices use cameras, GPS chips, microphones and other kinds of sensors to

predict their users' needs.

"It's this combination of computer devices doing things before you ask them to

do it, in that they're smart enough to know based on their sensors," said

Patrick Moorhead, principal analyst at Moor Insights & Strategy.

(Reporting By Noel Randewich; Editing by Dan Grebler)