Intel Developer Forum, Spring 2004

Anand Chandrasekher
Vice President, General Manager, Mobile Platforms Group
Intel Corporation
San Francisco, Calif.
February 18, 2004

ANAND CHANDRASEKHER: Good morning, I am Anand Chandrasekher, believe it or not, just sporting a slightly closer hair cut. About a year or so ago I challenged our sales organization to exceed their sales target on Intel® Centrino™ mobile technology, and they delivered. So of course I had to deliver [with shaving off my hair]. So I think it's safe to say mobile is about growth in more ways than one.

(Laughter.)

ANAND CHANDRASEKHER: IDC says the 2002 to 2007 compounded annual growth rate for mobile is expected to be in the 20 percent range and a key driver for this is Wi-Fi. That did come to be true in 2003. I was certainly anticipating that this wave is just at the beginning and it's going to continue throughout the course of this decade.

Mobile is also opportunity. When you look at the hand set business, half a billion units in 2003 sold. There's a segment of the handset business, the smart phones that is growing at about 100% compounded annual growth rate and this features applications processors and communications together. This is a sweet spot in the industry, and this is a space where our abilities to be able to innovate really plays to our advantage in this segment.

Two years ago we talked about in this forum that handsets and notebooks go better together when you have software that optimizes across that entire spectrum of devices, and basically delivers capabilities, communications, and data seamlessly across the device network.

One year ago here, Dr. Richard Wirt, Intel senior fellow and general manager of the Software and Solutions Group, spoke along with me on what we're doing to facilitate the ability of that software to be hitting the marketplace and optimizing for the spectrum of devices. I'd like to have Richard come and join me here on stage so we can give you an update on where we stand. Hi, Richard. Good to see you again.

(Guest speaker begins and ends.)

ANAND CHANDRASEKHER: 2003 was about driving Intel® Centrino™ mobile technology into the business segment. Into corporate and small and medium sized business. We did that through innovation. We did that collectively as an industry through great products, great technology, solving problems in the real world.

This year, we can certainly continue to drive momentum through innovation, and we should also take the opportunity to be able to drive Intel Centrino mobile technology into the consumer segment. That's a segment we haven't brought this capability and the technology to in its fullest manner possible. I think that's an opportunity that we can enable and capture this year.

So I want to talk a little bit about what we can do in each of these areas.

Certainly we will be investing our piece to be able to drive momentum and keep it up through innovation. As we do that and as you do that there are certainly a lot of opportunities that are going to manifest themselves where we can capitalize through a form factor standpoint to enable new usage models in the marketplace over the next couple of years and bring in users, more people into mobility and continue to get the growth rates that we've been looking at and would like to drive.

Last but not least, galvanize the ecosystem. Not just the Wi-Fi hotspots but the other things we need to do to keep the battery life going in the right direction, driving the ecosystem on power supplies, displays, express cards, et cetera.

So let's take a look at each one of these.

On the innovation side, what we're doing in the first half of this year, we're going to bring to market Dothan. Dothan is our 90 nanometer processor. It's going to ship in Q2. We did push it out from Q1. We were disappointed as you were. The product is very, very stable and we will be ready to ramp in Q2.

All the demos you're going to see today are basically going to be based on Dothan processors. We're expecting a very quick ramp. Behind me you can see about 50 or so systems being displayed. All these systems are Dothan ready. So when Dothan comes out, it's going to go into these systems. We expect a very quick ramp for the product line.

We're also shipping as of December our b/g solution into the marketplace. We launched that on December 15, and we expect that product to ramp during this quarter.

Next is Sonoma. Sonoma is our second half 2004 platform. And the linchpin in the Sonoma platform is the chipset code-named Alviso. Alviso is basically our next-generation chipset. It's a desktop brother, the one that Louis Burns talked about yesterday, Grantsdale. It has dual-channel DDR, PCI Express*, a lot of the features you would expect. It's also has cutting-edge graphics, Azalia, which features Dolby 7.1 surround. Also array microphone, which if you're doing Voice over IP or video conferencing over your PC, allows for noise cancellation, adaptive noise cancellation and location sensing, so that the audio that is transmitted to the person at the other end is much more precise and defined. And we'll see that during the course of today and in Pat Gelsinger's speech tomorrow. And Azalia, as I said, enables Dolby 7.1 Surround.

Now, let's take a look at what the capabilities of Alviso can do. To do this, I'm going to have my demo team start up with the Alviso demo. And you can see the graphics and the sound effects.

(Video plays and ends.)

ANAND CHANDRASEKHER: Thank you. That's running on Alviso silicon several months ahead of our launch. We're very confident of the product at this stage.

Sonoma also features our tri-band 802.11 solution that will be in production in the middle of the year time frame. When we bring that to market, it's also going to have the AES security protocol, which is part of the 802.11i specification. We also are going to be featuring a new software interface with the 802.11 triband solution, which is part of Sonoma. This new software interface is significantly simplified. It's a much easier user interface. You can actually see it on the screen behind me. And on the single screen, you can essentially look at the signal status, do profile management. You'll be able to look at the available networks. On the available networks here, you can see a/b/g, is being signaled. By the way, that system is the system it's running on. That is running on our tri-band silicon. This is the first public demonstration of Intel's tri-band.

You will also be able to turn the radio on or off on that screen. Much more simplified user interface. Big benefits for users. All of these changes were based on feedback we received from customers worldwide.

Now, how do you take all of these technologies and bring them to market? We've been on a yearly cadence that I've talked about at IDF over the last couple of years. Typically, at spring, I talk about concepts and what we would expect to see in platforms a year out. At fall, we talk about the platforms we're announcing. In fall 2003, I talked about Sonoma. Today I'm demonstrating the Sonoma elements. Fall of this year, we'll be announcing the Sonoma platform.

And spring of 2003, I talked about a concept called Newport. Newport was a new concept instantiation of a PC. It was a slate, it was a tablet, had an extended mobile access device or secondary display, a number of cool features. I'm going to give you a brief update and also talk about our concepts for 2005, which are code-named Florence.

Let's look at Newport first. Last spring, I showed Newport, and the idea behind Newport was to see whether we can enable new usages with Newport, and new customer categories with Newport. Today what I want to do is give you an update on how Newport is doing. We've had a lot of customers take this product idea and take concepts from it, instantiate it in their OEM product lines. Today I'm going to talk about two companies that are publicly announcing their plans with Newport. Lenovo and Legend are taking Newport, And Insyde, a software company from Taiwan, is going to be taking the extended mobile access display capabilities from us, licensing it from us, productizing it, making it available to the marketplace for customers at large.

Let's take a look at what Lenovo is doing. Up here on stage is Lenovo's interpretation of Newport. This is nicknamed Vela, it is a working system. And this particular system, they are prototyping the technologies and they will take it to market. This is what it looks like in the current instantiation, it's fairly close to what Newport did look like.

Insyde is licensing our EMA software. They're going to be productizing it and taking it to market. The screen behind me shows what extended mobile access display may look like. The window is what a window would be on a laptop. You can see icons, queued messages, battery life, signal strength and wireless LAN. If wireless LAN is incorporated, it would also allow the ability to see that, time, and battery status. A lot of capabilities, single glance, without having to open your notebook. And, again, facilitated industry innovation. Very cool. I'm quite excited by this one.

Now, we've taken these ideas, and we continue to explore new usage models. This year, I want to talk about three concepts rather than one concept. There's a 12-inch On-the-Go concept that we've continued to innovate on. If you want to think about it, think about this as Newport 2. It's very similar in capabilities to Newport. There's a 15-inch virtual office, which we'll demo, and a 17-inch mobile entertainment PC that we'll also demonstrate and show you what it's capable of.

Let's talk about these in more detail. Let's go to the 15-inch virtual office, Spencer.

(Demo begins and ends.)

ANAND CHANDRASEKHER: Let's take a look at the mobile entertainment PC I talked about, the 17-inch device up here. I'm going to show you what the device looks like first. This is what it actually looks and feels like. It's about seven to eight pounds. It's basically taking the transportable, luggable segment and put it on an Atkins diet. In this particular case, there should be a key ring here that I use to open it. And I can basically open up the -- there we go. You see the keyboard stand appear. And then I can pull out my keyboard. And the keyboard is a wireless keyboard. I'll just set this down and use this to do the rest of it.

It's a wireless keyboard that goes with that. This particular system has a built-in video camera. It has array microphones, it has the Azalia sound capabilities built in. It has biometric sensors. We'll show that in a bit, how we use that.

The keyboard itself has the mouse pad built into the keyboard. But if you pull this out, it effectively becomes a remote control to this and you can use it as your TV or as your Media Center device.

It also has a Voice over IP phone. So, effectively, you can use this to make phone calls over the same system. So could be an ideal system for a college student.

A lot of the concepts here are very cool. Let's look at what the sound system feels like off of this one.

(Video plays and ends.)

(Demo begins and ends.)

ANAND CHANDRASEKHER: So there are a couple of things that were shown here. The software that was actually being used here was a software called Sony AcidPro.*

Zack is a 17-year-old. He actually does have in real life a garage band up in Seattle. He was courteous enough to join us to be able to demonstrate some of his capabilities. And he has been using the AcidPro software.

So new usage models, and in this particular one we showed off a number of capabilities, the video conferencing through PC, you didn't see Voice over IP but you saw voice going through to change the profile management and clearly a lot of the technologies that are in Sonoma is what we use to make this concept.

All of the platforms here are thermally designed for our 2005 silicon devices that will be coming out. So they're optimized for that environment.

So cool concepts that enable some new usages in the marketplace, and with the enabling of these new usages, we certainly hope to continue to drive more and more people towards mobility devices and continue to accelerate the growth in this marketplace.

It also requires us coming together as an industry and working together on some of the elements that are more on the periphery of the platform itself. And subsystems as well as the ecosystem around it.

A number of years ago we launched the Extended Battery Life Working Group, and we've been continuing to work with the industry on the Extended Battery Life Working Group. We now have 22-plus vendors in this working group and today you'll see some announcements from two vendors on the display side. You will see an announcement from Toshiba and Matsushita, display company. They'll be announcing the first two and a half watt display for a 14.1 inch screen size as well as they'll be announcing a 2.7 watt display for an XGA Plus. Again, they have 14.1 resolution.

That's pretty significant. Today, the power consumption of those displays ranges from 3.7 to 4.5 watts so a pretty significant reduction in power consumption. Sharp as well is announcing today a two and a half watt display, 15 inch XGA capability.

So good results from these companies.

Also, on the standard panel working group is announcing today their 3.0 specification, and with that specification, what it effectively does is allows display vendors to be able to standardize connectors and the placement of the inverter in the displays. And both of those innovations together will allow time-to-market of displays while maintaining the ability for the display vendors to differentiate on resolution, power, performance characteristics and improve time to market and the overall supply for the industry at large.

ExpressCards™ are something I talked about last time. Many ExpressCards are now ready to go to the market, tail end of this year. If you go to the showcase you'll see a lot of them. There's over about two dozen of them in the display there.

There will be a plug fest that comes out at the end of the Q1 timeframe by the PCI working group to test out these cards in the platforms and there will probably be another one towards the middle of the year prior to launch into the platforms themselves.

So lots of activity in this area as a result of the Extended Battery Life working group. We're also doing a lot from a wireless verification standpoint. This is an activity Intel undertook along with our industry leaders. We now have over 100-plus service providers worldwide that are engaged in this program. We have over 30,000 hotspots worldwide in this program. We're going to continue to expand the program this year. We're adding the 802.11g verification capability into this program.

There was an announcement earlier this week where the city of San Francisco is engaged in an arts program. It is arts-oriented but as part of this program, Union Square and downtown is completely lit up for Wi-Fi. So those of you who want to do something in the evenings and have some free time, you might want to check it out. It's completely free access to anyone who wants to use it. At the same time the San Francisco Museum of Modern Art (SOMA) is also going wireless. They have an 802.11g network in place which is put in place for them by On Air which is streaming TV and media to people who want to be able to access it. If you have your IDF badges you can go there and get access for free and check it out. That's at SOMA. Those are two announcements happening this week in the city.

So continuing to galvanize the ecosystem, continue to make progress along the lines we said last year. We're going to keep that moving forward as we go along.

In summary, 2003 was clearly a good growth year. We think the momentum continues into 2004. We have the opportunity to take Intel Centrino mobile technology and drive it into the consumer segment, and bring the same benefits that the corporate and SMB segment have been interested in exploiting and taking advantage of. We think we can do the same thing in the consumer segment coming together and working together as an industry.

Lots of opportunities to innovate and differentiate. You saw that extended mobile access is starting to hit momentum and hit its stride with Lenovo and other concept platforms. You can see that in the marketplace this year and into next year. Some of these concepts may make themselves into the marketplace and technologies that are going into these are what we think are going to be the basis for innovation in this segment for the coming two years.

So we have lots of opportunity here. We look forward to working very closely with you in the industry to drive this mobile growth and accelerate it. Thank you very much.

About Intel
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