Intel: "World's Poorest Don't Want $100 Laptop"

[David Farber <dave () farber net>]

Begin forwarded message:

From: Randall <rvh40 () insightbb com>
Date: December 10, 2005 10:26:09 PM EST
To: Dave <dave () farber net>, JMG <johnmacsgroup () yahoogroups com>
Subject: Intel: "World's Poorest Don't Want $100 Laptop"

http://news.yahoo.com/s/nm/20051209/tc_nm/ 
technology_intel_dc&printer=1;_ylt=Apq1sBouHlw02IPLKOvJu4pU. 
3QA;_ylu=X3oDMTA3MXN1bHE0BHNlYwN0bWE-
World's poorest don't want '$100 laptop': Intel
By Peter AppsFri Dec 9, 9:48 AM ET


Potential computer users in the developing world will not want a basic
$100 hand-cranked laptop due to be rolled out to millions, chip-maker
Intel Corp. (Nasdaq:INTC - news) chairman Craig Barrett said on Friday.

Schoolchildren in Brazil, Thailand, Egypt and Nigeria will begin
receiving the first few million textbook style computers from the
Massachusetts Institute of Technology (MIT) media lab run by Nicholas
Negroponte from early 2006.

"Mr. Negroponte has called it a $100 laptop -- I think a more realistic
title should be 'the $100 gadget'," Barrett, chairman of the world's
largest chip maker, told a press conference in Sri Lanka. "The problem
is that gadgets have not been successful."

United Nations Secretary General Kofi Annan has welcomed the development
of the small, hand-cranked lime-green devices, which can set up their
own wireless networks and are intended to bring computer access to areas
that lack reliable electricity.

Negroponte said at their launch in November the new machines would be
sold to governments for schoolchildren at $100 a device but the general
public would have to pay around $200 -- still much cheaper than the
machines using Intel's chips.

But Barrett said similar schemes in the past elsewhere in the world had
failed and users would not be satisfied with the new machine's limited
range of programs.

"It turns out what people are looking for is something is something that
has the full functionality of a PC," he said. "Reprogrammable to run all
the applications of a grown up PC... not dependent on servers in the sky
to deliver content and capability to them, not dependent for hand cranks
for power."

NO INTEL "GADGETS"

Barrett said Intel was committed to delivering IT access to the
developing world -- and is helping Sri Lanka Telecom (SLTL.CM) set up
south Asia's first long-range WIMAX wireless network -- but would not
produce a cut-price product like MIT's computer.

"We work in the are of low cost affordable PCs, but full function PCs,"
he said. "Not handheld devices and not gadgets."

He said Intel was also expanding an IT teacher training scheme it says
has already reached three million schoolteachers worldwide to Sri Lanka,
and praised local projects aimed at producing computer literacy. Some 90
percent of Sri Lankans were literate but only 10 percent computer
literate, he said.

Shares in Intel, which makes the microchips found in nearly 90 percent
of the world's PCs, fell 1.7 percent on Thursday after it set a sales
target slightly lower than the $10.6 billion Reuters Estimates had
showed analysts expecting.

The firm said it now expects quarterly revenue of between $10.4 and
$10.6 billion from its previous range of $10.2 to $10.8 billion. Barrett
said this was in no way a cut.

"It ended up with the same mid-point targets as the original that we
gave at the start of the quarter," he said. "I think all we did was
reaffirm the targets we had given earlier."

---
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