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Intel bets on rapid rise in 'ultra-mobile' computing

Intel Corp is betting on a big expansion of "ultra-mobile" computing, an idea that could hinge on how many gadgets people are willing to tote around.

In an interview on Monday at the International Consumer Electronics Show (CES), Intel CEO Paul Otellini said energy-efficient, Web-connected computers with full keyboards and screens in the 10cm (4-inch) neighborhood can give people more of what they want from the Internet than cellphones can.

To help stimulate the technology, Intel plans in the next few months to begin shipping processors and associated "chipsets" that demand relatively little power and are smaller than standard PC processors, allowing them to be crammed into tinier devices, which would be built by other companies.

Eyeing a similar market, wireless chip maker Qualcomm Inc also has built prototypes of little Web devices.

Its chief operating officer, Sanjay Jha, said he expects manufacturers to take up the blueprints and begin selling what he calls "pocketable computers" by the end of this year.

So far, so-called ultra-mobile computers, smaller than average laptops but bigger and more fully featured than most cellphones, have gotten a tepid response.

With the devices' prices often beyond US$1,000, many potential buyers have found little reason to scale down from their notebook computers or up from cellphones that have been improving their Web browsing experience.

"How do you make people realize that this is something advantageous to them and different from the notebook experience?" said Richard Shim, an analyst with market researcher IDC.

"That's the trick. Nobody's been very good at that yet. ... It's not as widely compelling as it needs to be if they want it to compete on the level of a phone or a PC," Shim said.

But Otellini said such distinctions will cease to matter, especially since small Web devices can incorporate cellphone functions. And he said Apple Inc's iPhone showed that combination devices can be elegant.

"You're projecting an end stage on an early technology," he said. "That's a risky thing to do."

To be sure, even with cellphones in nearly every pocket or purse, another gadget could be appealing if it does something particularly compelling. For example, more and more cellphones play music, but plenty of people also carry MP3 players that do the job better.

In a keynote speech on Monday at CES, Otellini tried to show that ultra-mobile PCs -- he prefers the name "mobile Internet devices" to better distinguish them from laptops -- offer a new kind of information-on-the-go bliss.

He demonstrated how a US traveler to Beijing might use a pocket computer to get real-time navigation tips and instant translations of signs, menus and conversation from Chinese.

Otellini acknowledged that this vision for ultra-mobile computing might not be fully realized for a few years.

For one thing, little PCs need longer battery lives so people can tote them around and use them all day.

Intel also expects wireless broadband networks based on the WiMAX standard will develop much further to enable connectivity on the devices. But Otellini said the computers could also make use of cellular networks.

That is the connectivity route favored by Qualcomm, which is a major supplier to the wireless industry. Jha said wireless carriers first will need to come up with more enticing data pricing plans.

Proof that wireless carriers will be crucial is in the weak reception for Sony Corp's Mylo handheld messaging device. Though it has a full keyboard and sells for around US$300, it can go online only in Wi-Fi hot spots, which have limited range.
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