Taiwan notebook PC makers ask Intel to trim Centrino prices

Taipei, Feb. 18, 2003 (CENS)--Several notebook PC makers in Taiwan are pressing Intel Corp. of the United States to reduce the prices of its new Centrino computing platform, which is scheduled to debut in March.

Intel claims that its Centrino platform delivers cutting-edge system performance and power-saving enhancements to extend battery life in notebook PCs, combined with integrated wireless connectivity and standards-based security support. The technologies represented by the Intel Centrino brand will include a microprocessor (formerly code-named "Banias"), related chipsets and 802.11 (Wi-Fi) wireless networking capability.

J.T. Wang, president of Acer, Taiwan's top PC brand, recently expressed confidence about the sales prospects of Centrino-equipped notebook PC models. He said that the new technology will lead to the biggest generational change in the notebook PC industry in the past three to five years. The outstanding power-saving technology and integrated wireless networking capability of the Centrino will help the notebook PC industry push the so-called "Desknote" models (notebook PCs with desktop PC components) out of the mobile computing market, he said.

Most Taiwan notebook PC manufacturers, however, think that the Centrino platforms are too expensive to use on consumer notebook PCs.

In response to the requests made by local notebook PC makers to cut prices, Stanley Huang, director of marketing and business operations for Intel Asia Pacific, said that his company would not reduce Centrino prices before they are demonstrated. The director said that the new platform would first focus on business applications in the initial stage and later penetrate into the family PC segment.

Huang said that in assessing the fairness of the Centrino pricing, consideration should be given to the wireless communication functions the platform incorporates.

Ray Chen, president of Compal Electronics Inc., a leading contract supplier of notebook PCs, said that wireless communication is an inevitable development trend as more and more 'hot spots'--locations with wi-fi infrastructures--are established in the United States. Such trend, the director added, is the major reason for Intel's optimism about the Centrino platform's future.

Chen added that at over US$200 per unit, the Centrino is too expensive for use in consumer notebook PCs and is aimed mainly at buyers of business-use models, who are willing to pay a premium for the added functions and efficiency. As most notebook PC makers in Taiwan are predicting a pickup in notebook PC sales worldwide this year, Chen said that he has allied with many counterparts to jointly ask Intel to cut Centrino prices.

The Centrino platform combines a 1.3 gigahertz (GHz) processor and an 802.11b wireless communication module and is scheduled to be priced at US$229. An 802.11a/b dual-band version will sell for US$244.

Transmeta Corp. of the U.S., another major supplier of processors for portable devices, recently stated that it has no immediate plans to offer processors with wireless communication functions.