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Intel told analysts Thursday it plans to develop chips for new varieties of hand-helds, consumer electronic products, and portable computers for emerging market economies. It said each of the three lines has the potential for $10 billion in revenues per year. The gadgets and their chips, geared to poorer economies, will require the chipmaker to improve effiency in order to keep profit margins up, CEO Paul Otellini said. An example: The Silverthorne microchip, which uses a quarter of the space and power of today's laptop chips. The chip will be used in mobile internet devices [MIDs], and as many as 2,500 of them can be made on one silicon wafer (compared with only hundreds of standard chips). Intel 04 05 2007 Chart"We think we can drive our architecture and our franchise into new marketplaces," Otellini said. He also said the company will likely continue to cut jobs, shaving $2 billion in costs in 2007 and onther $3 billion in 2008. Shares dropped 0.4% yesterday to $21.74; they are up 8.8% over the past year.

Sources: Wall Street Journal
Commentary: Intel's A Long Term Buy From This Beaten-Down PriceIntel's A Long Term Buy From This Beaten-Down Price6 Reasons To Buy Intel Right Now
Stocks/ETFs to watch: Intel Corp. (NASDAQ:INTC). Competitors: Advanced Micro Devices Inc. (NASDAQ:AMD), Texas Instruments Inc. (NASDAQ:TXN). ETFs: HOLDRS Semiconductors (NYSEARCA:SMH), iShares Goldman Sachs Semiconductor Index Fund (IGW), PowerShares Dynamic Semiconductor (NYSEARCA:PSI)
Conference call transcript: Intel Q1 2007 Earnings Call Transcript

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Source: Intel's Three New Chips for Emerging Markets