Intel Pins Hopes On New Chips Essay - 1,619 words

Intel pins hopes on new chips The company is aiming at consumer electronic devices, set-top boxes and digital gadgets. By Clint Swett -- Bee Staff Writer Published 2:15 a.m. PDT Monday, September 22, 2003 The article focuses on the new economic plan developed by Intel Corporation aimed on broadening the range of products the company produces. The Intel top executives informed the attendees of annual gathering of hardware and software developers about the attractiveness of consumer electronics market in terms of size and potential profit, which means more jobs and more control, as well as the substantial influence on the economy overall. Statistics in the USA says that people were actively buying such devices as digital cameras, DVD players, and televisions last year. The market value was $93 billion in 2002 and this figure is expected to reach $120 billion in 2004 meaning about 25% increase as compared to 2002.


Having acknowledged the potential benefits of conquering the consumer electronics market Intel decided to finance the development of the new chip technology called Bulverde that will allow, upon being installed in phones, to play full motion video, which would certainly be a segment breakthrough, and also feature the possibility to take photographs with up to 4 megapixels of resolution. This technology is planned to have a totally competitive price on the market and, combined with the consumers desire to acquire great quality, will provide multiple return on investment for Intel Corporation. However, in order to view the article in economic context, one must be familiar with the role of innovations and technological progress in the development of any economy and their importance for economic growth. Let me describe the simplest virtuous circle. For instance, consider the economy with low level of inflation. The Central Bank will have adequate conditions to keep interest rates low then. This pleasant fact will lead to more people willing to land money for the purpose of investing them in business.


This, in its turn, will definitely lead to increased production capabilities. However, let me focus on the role of innovations. Today, everyone seems to be talking about the new economy. Generally, the new economy can be viewed as the most recent in the series of events that changed productivity paradigms and thus changed the way the society exists. The three-field system increased productivity in medieval Europe and thus allowed population to grow and prosper from trade. Isnt it the best example of innovations at work? In the 19th century the invention of the steam engine made the same effect.


It replaced human and horse power with mechanical energy, provided the trains and steamships for the development of the new economy. Basically, this very invention created the new economy. Today, information plays the role of the economic steam engine. We are on the point of the new paradigm shift where technologies play the greatest role ever possible. Our society relies on information more than any other society ever did. The new generation of microprocessors, telecommunication equipment and services makes it possible to deliver knowledge and information to the decision makers in real time and thus provides them with the possibility to deploy resources in much more efficient way.


This fact is extremely important in our contemporary world because of the growing concern for resources preservation. Actually, it is needless to remind the basic economic principle of the scarcity of resources, which states that our needs are unlimited while resources are limited. Alan Greenspan once noted his attitude towards the relationship between investments and innovations by observing that the history of the humanity is characterized by gaining knowledge. Knowledge is used by the humanity simply to prolong growth. Technological progress is simply the way to find more efficient use of the resources we already have. Innovation is the steam engine of the economy, while investments is its fuel. Consumer Electronics Market Value Increase Graph: The expected increase in Camera Phones sales graph: Intel pins hopes on new chips The company is aiming at consumer electronic devices, set-top boxes and digital gadgets.


By Clint Swett -- Bee Staff Writer Published 2:15 a.m. PDT Monday, September 22, 2003 Get weekday updates of Sacramento Bee headlines and breaking news. Sign up here. SAN JOSE -- For nearly a decade, "Intel Inside" has been emblazoned on the vast majority of personal computers sold worldwide. Now the chip-making giant is pushing hard to make its silicon the chips of choice to power a new generation of cellular phones, set-top boxes and other digital gadgets. At its annual fall gathering of hardware and software developers here last week, Intel executives urged attendees to embrace consumer electronics as a big and prosperous market.


Sales of computers are in the doldrums. But people conti ...................................................................................................................................................................................................................................................................................................................................................................

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Essay Tags: consumer, intel, digital camera, chip, steam engine

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