Intel unveils new Atom chips for netbooks

TAIPEI, TAIWAN: Intel Corp announced on Tuesday plans for new versions of its low-power Atom processors for netbook computers and portable tablet devices, seeing rapid growth in such products.

The new "Pine Trail" and "Oak Trail" chips in the Atom family, announced at the Computex fair in Taipei, are optimized for tablet and netbook designs, and will deliver up to a 50 percent reduction in average power consumption with full HD-video playback, Intel said. "Oak Trail" chips will be available in 2011.

More than 50 million Intel-based netbooks were sold in the past two years, and Atom chips have made their way into netbooks sold by Taiwan's Asustek Computer and Acer. and the company sees the same amount in the next two years.

"Absolutely 50 million and more over the next two years," said Matthew Parker, general manager of Intel's Atom client division.

"We made committed to the small form factors computing the netbooks provide and are optimistic about the growth opportunity within that segment," he told Reuters in a telephone interview.

"Tablet is an additional opportunity on top of that."

Research firm Gartner forecast mini-notebook sales will grow at some 30 percent this year, but added that growth will slow as tablets such as Apple Inc's iPad become more popular.

Intel, which makes the microprocessors used in more than three-quarters of the world's PCs, has said it expects to double its earnings growth in the next few years.

It also raised its long-term margin outlook, as it aims to spreads its chips beyond PCs, a market it now dominates, to gadgets like smartphones and televisions.

Intel is cooperating with Google and Sony on an Internet-based TV device that will use Atom processors.

Asustek, which created popular Eee PCs, will be the world's first netbook maker to ship a pre-installed, customized AppUp client called "Asus App Store" on netbooks later this year, Intel said.

Intel's AppUp centre is an online resource that netbook vendors can create and customize to allow users access to find those netbook-specific apps recommended by the vendors.

Apps in a variety of categories can be downloaded for free or bought through an Intel website, and the company plans to expand it to other products such as PCs, smartphones and TVs.