Mention Intel to the average person and chances are they will link the company to the personal computer. They probably couldn’t tell you who made the other components but they know about “Intel Inside” and Pentium – mostly due to their near-constant drumbeat of largely meaningless advertising.
But starting this week, Intel plans to begin an expensive campaign to break that association. Instead the world’s largest manufacturers of microprocessors wants to be known for making “platforms”, various combinations of chips and software which power devices in areas like consumer electronics, wireless communications, and health care.
Why the shift? Stark necessity. PC growth is slowing, even as cell phones and handheld devices compete for the numero uno spot in people’s lives. Otellini must reinvent Intel — or face a future of creaky maturity.
Of course, Intel’s corporate shake up is all about the profits. But it’s also a huge acknowledgment that a growing number of users don’t really care what’s inside the box anymore. They want portable electronic devices that work well, are easy to use, and allow access to data, information and media just about anywhere. (Oh, and do something about battery life!)
However, it’s way too soon to tell if Intel really understands the shift in what people want from their computers (for lack of a better term) and can make the transition. They have been so focused on processors at the hear of the box for twenty years or more that it may be tough on a corporate culture not used to making big changes. Their engineers need to learn that we don’t need faster chips anymore, we need smarter ones.
Just because of Intel’s size and influence, it will be very interesting to see what they come up with for the Consumer Electronics Show starting Thursday. Even better, though, I’m looking forward to seeing what Apple (now one of Intel’s partners) announces at their big show next week. They probably have a better read on consumer electronics than Intel does.
2006 is going to be a fun year for us tech geeks. :-)