September 11, 2002

PCs to be Intel's wedge into wireless

CNet: SAN JOSE, Calif.--Intel is set to release its first chips into the wireless market and plans to use its strength in the PC world to get a head start. (full story)

My spin:802.11a and 802.11b are important for internal and external wireless computing. Having these two standards on one card will be very beneficial. Combining a regular dial up modem with the cards is even better.

Intel is applying a formula to its wireless strategy that has been a great success in the past. Rather than sell chips alone, Intel can sell a complete package of parts that work together. At one time, the company did not actively manufacture chipsets, but it quickly became one of the largest makers in the world by selling its processors in tandem with its chipsets. It did the same with motherboards.

For PC makers, the motivation to buy the complete bundle of products lay in lower cost. By adopting Intel's blueprint, PC makers could reduce the amount of independent design work they had to perform. Qualification can also be a long, arduous process with little benefit in terms of market differentiation or performance. Plus, by buying more Intel parts, the companies can qualify for volume discounts.

0 comments