Intel Expands Beyond PCs

Paul Otellini, Chief Executive of Intel Corp., is looking to build Intel’s business outside of the PC market. Intel’s microprocessor chips dominate the PC industry, however there isn’t enough growth in that area to satisfy Intel and its shareholders so Mr. Otellini hopes to broaden business to include smartphones, consumer electronic devices, cars, and other products. To assist in this expansion, Intel has acquired Texas Instruments Inc.’s unit that sells cable-modem chips, Infineon Technologies AG’s wireless chip business, and McAfee Inc. as a specialist in security software. Intel is also supplying chips for Google Inc.’s Google TV venture.

This move is influential to the telecommunications industry because, in today’s society, advanced electronics are nothing without good performance. For example, many have criticized that the iPhone 4 isn’t noticeably different from the iPhone 3GS. The difference comes in performance, not in package or technology. Simply, the iPhone 4 is faster and more efficient. Intel’s expansion is going to make the Internet in all web-connected devices as fast as the Internet on our PCs. Software is no longer contained to the computer world, but consumers often find comfort in PCs because they are easier to use than much other technology.

There is also the question of how Intel’s growth across other industries will impact Apple Inc. Google TV and Apple TV are going head to head, along with the iPad and various Intel-based tablets, especially Samsung’s Galaxy Tab – a direct competitor to the iPad. As Intel expands into fields that Apple has yet to touch, such as cars, many wonder if Apple is losing its edge and if it will be swallowed by its competition. It will be interesting to follow how Apple responds to Intel’s expansion into such diverse fields, especially as Apple previously used Intel chips but has since simplified.