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Intel has some explaining to do.
The chip maker surprised and puzzled the tech industry last month with its $7.7 billion purchase of security software company McAfee, then disappointed investors by warning that its third-quarter revenues will come in below expectations.
Despite record financial results last quarter, Intel's stock is sagging near its lowest point of the year. The company's microprocessors have been shut out of the hottest gadgets, notably the iPhone and smart phones based on Google's Android operating system.
Industry watchers wonder whether the venerable tech company, which continues to dominate the chip market for PCs and corporate servers, may be vulnerable in a new era of mobile computing.
Intel will address many -- but not all -- of those questions this week at its Intel Developer Forum in San Francisco. Intel uses the annual showcase to tout its new ideas directly to the people who design and build computers, and to promote Intel-led initiatives to steer the future of computing.
Though Intel's headquarters are in the Bay Area, its biggest operating hub is in Oregon, where the company has 15,000 employees, more than any other company.
The chip maker surprised and puzzled the tech industry last month with its $7.7 billion purchase of security software company McAfee, then disappointed investors by warning that its third-quarter revenues will come in below expectations.
Despite record financial results last quarter, Intel's stock is sagging near its lowest point of the year. The company's microprocessors have been shut out of the hottest gadgets, notably the iPhone and smart phones based on Google's Android operating system.
Industry watchers wonder whether the venerable tech company, which continues to dominate the chip market for PCs and corporate servers, may be vulnerable in a new era of mobile computing.
Intel will address many -- but not all -- of those questions this week at its Intel Developer Forum in San Francisco. Intel uses the annual showcase to tout its new ideas directly to the people who design and build computers, and to promote Intel-led initiatives to steer the future of computing.
Though Intel's headquarters are in the Bay Area, its biggest operating hub is in Oregon, where the company has 15,000 employees, more than any other company.
Two of Intel's top Oregon executives will deliver keynote addresses this week. Software chief Renee James will tout an ecosystem of mobile apps, and Justin Rattner, chief technology officer, will highlight Intel's long-range vision.
"I think Intel is kind of under the gun from the investment community and everyone else to show a new growth path," said Jim McGregor, who follows Intel for the research firm In-Stat.
"You have to have something beyond PCs and servers," he said.
To that end, Intel plans to showcase its Atom microprocessor this week, a low-power, customizable chip now powering a class of ultramobile computers known as netbooks.
Intel will show off other uses for Atom at IDF, notably the forthcoming Google TV.
Apple dumped Intel from its latest version of Apple TV in favor of a design by ARM Holdings. But Google's much-heralded initiative puts Atom at the center of a device that would stream video from across the Web straight into your TV.
It's the biggest consumer electronics win for Intel in years, and the chip giant plans to make the most of it with a series of smart TV workshops and demonstrations at IDF. Intel indicated last week that some versions of the device will start shipping this month.
Other uses for Atom, too, in forthcoming tablet computers, embedded computers inside everything from consumer gadgets to industrial equipment.
Intel boosted its mobile prospects considerably last month with a deal to buy the wireless chip division of Infineon, the German semiconductor company. The $1.4 billion acquisition gives Intel ownership of communications chips in the iPhone and other devices.
Even so, smart phones aren't going to be a focus of Intel's pitches this week. The company hasn't gotten a big win in that space yet and likely will keep its powder dry 'til next year, when it expects several smart phones will hit the market using a new version of Atom.
Neither does Intel expect to say much about its McAfee purchase, the biggest in its history. Intel already has said it plans to incorporate security software in its chips, and won't elaborate until the deal closes and the first chips incorporating new security software appear next year.
One area that Intel says it will emphasize, starting with Chief Executive Paul Otellini's keynote address Monday morning, is a new class of microprocessor called Sandy Bridge due late this year.
Intel researchers in Hillsboro have been steadily crafting smaller, more robust microprocessors. That's made room on the chip for more robust graphics capabilities on the chip itself, instead of as a separate component.
Earlier this year, Intel postponed plans for its own graphics chips after development of a new technology called Larrabee proved disappointing.
The new design isn't as robust as a stand-alone graphics processor, made by rival chip makers AMD and Nvidia. But Intel believes Sandy Bridge's graphics capabilities will be adequate for many computing needs, and the company plans to make its capabilities a centerpiece of IDF
"I think Intel is kind of under the gun from the investment community and everyone else to show a new growth path," said Jim McGregor, who follows Intel for the research firm In-Stat.
"You have to have something beyond PCs and servers," he said.
To that end, Intel plans to showcase its Atom microprocessor this week, a low-power, customizable chip now powering a class of ultramobile computers known as netbooks.
Intel will show off other uses for Atom at IDF, notably the forthcoming Google TV.
Apple dumped Intel from its latest version of Apple TV in favor of a design by ARM Holdings. But Google's much-heralded initiative puts Atom at the center of a device that would stream video from across the Web straight into your TV.
It's the biggest consumer electronics win for Intel in years, and the chip giant plans to make the most of it with a series of smart TV workshops and demonstrations at IDF. Intel indicated last week that some versions of the device will start shipping this month.
Other uses for Atom, too, in forthcoming tablet computers, embedded computers inside everything from consumer gadgets to industrial equipment.
Intel boosted its mobile prospects considerably last month with a deal to buy the wireless chip division of Infineon, the German semiconductor company. The $1.4 billion acquisition gives Intel ownership of communications chips in the iPhone and other devices.
Even so, smart phones aren't going to be a focus of Intel's pitches this week. The company hasn't gotten a big win in that space yet and likely will keep its powder dry 'til next year, when it expects several smart phones will hit the market using a new version of Atom.
Neither does Intel expect to say much about its McAfee purchase, the biggest in its history. Intel already has said it plans to incorporate security software in its chips, and won't elaborate until the deal closes and the first chips incorporating new security software appear next year.
One area that Intel says it will emphasize, starting with Chief Executive Paul Otellini's keynote address Monday morning, is a new class of microprocessor called Sandy Bridge due late this year.
Intel researchers in Hillsboro have been steadily crafting smaller, more robust microprocessors. That's made room on the chip for more robust graphics capabilities on the chip itself, instead of as a separate component.
Earlier this year, Intel postponed plans for its own graphics chips after development of a new technology called Larrabee proved disappointing.
The new design isn't as robust as a stand-alone graphics processor, made by rival chip makers AMD and Nvidia. But Intel believes Sandy Bridge's graphics capabilities will be adequate for many computing needs, and the company plans to make its capabilities a centerpiece of IDF
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