Intel targets unbranded PC market

The world's leading chipmaker, Intel, is looking to expand its China market scope by focusing on the unbranded PC market that thrives in the netbar sector. The move comes after the US-based company's leading rival Advance Micro Devices (AMD) started to make inroads into Intel's longstanding dominance of the Chinese chip market. According to market analysts International Data Corp, or IDC, Intel saw its China market share cut by ten percentage points over the first quarter of this year compared to the same period in 2005. In the first quarter last year, Intel claimed 84 percent of the market down this year to 74 percent, largely due to competition from AMD which launched an aggressive and well-planned China campaign in 2004.

Intel is now looking to reach parts of the market that it has previously not necessarily reached, such as the Internet cafe market where most machines are unbranded products from so-called 'white box' manufacturers. However, the netbar sector demands high performance from its machines because of the high proportion of gamers using their machines. Intel is therefore looking to target this market for its new Core 2 Duo and Core 2 Extreme processors, which replace the Pentium series of processors.

Intel's China netbar strategy also recently showed another face. Intel China linked up with Hong Kong and Chinese Internet portal operator Tom Online earlier this month to launch the Intel i-Café Music Studio in Zhengzhou, Henan Province. The studio is equipped with Intel's advanced home entertainment music platforms and offers young people the chance to record their own music. According to Intel, the studio is the first of 13 to be set up in different Chinese cities and constitutes a step forward in making netbars positive, exciting environments for young people to spend time in.

CMI - 22/8/06