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Vista Demand Weak, Intel Must Scramble

by , 2:10 PM EST, March 7th, 2007

Intel faces a glut of CPUs and a weak corporate demand for new computers. Intel CEO Paul Otellini told analysts they're working hard to remain profitable and will return to their old design philosophy, according to ITWorld on Wednesday.

"There's clearly more capacity to build microprocessors than there is demand in 2007, and probably in 2008," Mr. Otellini told financial analysts at the Morgan Stanley Technology Conference in San Francisco.

Intel announced that they will be doing product refreshes every two years, upgrading the architecture in one year and shrinking the transistor geometry in the other. The latest reduction in process size is to 45 nanometers (nm), and Intel expects the resulting chip, Penryn, to be available in 2007. Penryn is expected to consume considerably less power than its predecessors.

Rik Myslewski expects this new Penryn CPU to show up in Macs before the end of the year.

The glut of CPUs is forcing prices down, and Intel needs to convince buyers that it has a compelling new chip.

In fact, TMO notes, the push by Intel to regain its dominant market share, remain profitable, and advance the technology can only be good signs for Apple. If there were any worries that Apple needed to compete for CPUs, at least in 2007 as Vista languishes, they appear to be unfounded.

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Observer Comments

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Close Name:Guest
Wed Mar 07, 2007 4:11 pm Subject: Sign of the M$ decline

Smart people have been saying for a long time that M$ is sure to crash and burn. I think that the weak demand for Vista will be cited in future years as one of the signs that the decline had well begun and that this was one of the confirmations that the slide was well underway.
PhotoBug


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Close Name:Guest
Wed Mar 07, 2007 5:27 pm Subject: no compelling reason to upgrade

vista offers no compelling reason to upgrade to new hardware, when 95% of things can still be done with 4 year old hardware. Even 10.5 (at least what i know of it now) wont be a reason for me to upgrade my duel 1.25 g4 before my planned hardware refresh cycle of 5 years.

Microsoft almost admitted as much by jumping into the game console market. When faster and faster processors for Office makes no sense, the only room for growth was in gaming and entertainment.


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Close Name:Guest
Wed Mar 07, 2007 6:02 pm Subject: M$ and games hardware

Quote
Guest wrote:
vista offers no compelling reason to upgrade to new hardware, when 95% of things can still be done with 4 year old hardware. Even 10.5 (at least what i know of it now) wont be a reason for me to upgrade my duel 1.25 g4 before my planned hardware refresh cycle of 5 years.

Microsoft almost admitted as much by jumping into the game console market. When faster and faster processors for Office makes no sense, the only room for growth was in gaming and entertainment.
And haven't they done a good job there!? 1.5 billion loss and counting for that little escapade. PS 2 still outsells X Box 360...


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Close Name:jbelkin Posts: 20 Joined: 23 Jul 2003
Wed Mar 07, 2007 7:39 pm Subject: 1950's GM = MS 1990's

While it took GM 50+ years to squander their lead, on internet time ... MS is at 50 years. It's not that MS will go away - after all, wedding kiosks, oil change & telemarketers will still need some OS - any OS and Win is the rental car fleet of OSes ...


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Close Name:Guest
Wed Mar 07, 2007 10:14 pm Subject: This is what pushed Comp USA over the edge...

Comp USA has been feeling the pinch for some time, and Vista's lack of driving sales for new computers is one BIG final nail in their coffin. Many people also buy printers and other peripherals when they buy computers at stores like Comp USA (verses buying a computer online), sales of everything "PC wise" are flat.


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Close Name:yoyo52 Posts: 1174 Joined: 02 Feb 2002
Wed Mar 07, 2007 11:51 pm Subject:

Would MS be dumb enough to stop supporting XP in order to force grades (I don't know what to call 'em. . . upgrades? downgrades? sidegrades?) to Vista?


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Close Name:Guest
Thu Mar 08, 2007 2:40 am Subject: Grades

Perhaps 'regrades' is the expression that you are looking for.


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