Putting Intel Inside, Apple Rolls Out Line of Fast PCs
SAN FRANCISCO — Steve Jobs did the talking Tuesday, but it was Paul Otellini many people heard.
Jobs, the chief executive of Apple Computer Inc., was rolling out his company's first computers powered by chips made by Intel Corp., headed by Otellini.
But as Jobs extolled the performance of Apple's new Intel-powered desktops and laptops -- and announced record quarterly revenue -- many analysts watching the presentation at the annual Macworld Conference & Expo here interpreted the alliance as a subtle warning by Intel to its traditional PC partners that they need to innovate more.
A TV commercial promoting the new iMacs and MacBook Pro says Intel processors have been "freed" from being "trapped inside PCs -- dull little boxes -- performing dull little tasks."
The message should be a "kick in the pants" to Dell Inc., Hewlett-Packard Co. and other PC makers that use Intel chips, said Tim Bajarin, president of the Silicon Valley consultancy Creative Strategies.
"I think Intel is trying to spur their existing PC customers to be more creative," he said.
Intel in recent years has aggressively developed and marketed chips to handle audio and video more efficiently. Like many tech companies, Intel wants to expand its influence to the living room and control how people watch TV, listen to music and share photos in the Internet era.
Problem is, computer makers -- and most consumer electronics companies -- have had little success convincing customers that their vision of a totally connected home is worth the time, money and hassle.
Apple, on the other hand, is known for developing software that allows users to easily make slick slide shows and home movies, said Roger Kay, president of research firm Endpoint Technologies. Although Apple has just more than 4% of the U.S. computer market, its sales are growing fast with the help of its wildly popular iPod music players.
"If you're Intel and you're trying to get the industry to do more digital media, what better prod could you have than Apple?" Kay said. "Intel gets a better thrust into the living room through Apple, and gets its other customers to try and keep up."
The commercial was produced by Apple and did not require Intel's approval, said Deborah Conrad, an Intel vice president of sales and marketing who is in charge of the chip maker's Apple business. "It's tongue-in-cheek, it's a cool ad," Conrad said. "It doesn't mean we agree that all our customers are making boring little boxes."
