The launch of a new mobile Centrino notebook processor by the US giant Intel will serve to boost sales of notebooks, with the company's aggressive pricing strategy and the chip's enhanced functions.

The world's biggest semiconductor company yesterday released the new generation of Centrino processors called "Sonoma" in Beijing.

The processor, with faster wireless Internet connection, more multimedia-functions and higher security, is believed will draw the eyes of many a customer.

Ian Yang, general manager of Intel China, said he believes the new processor will become a mainstream product this year and a basic component of all next year's notebooks.

According to John Antone, Intel vice-president and general manager for Asia Pacific, over 60 percent of notebook computers sold in the region have Centrino processors.

Yang expects over 150 notebook models will carry the Centrino processor by the middle of next year.

"It is a very attractive product to both computer makers and customers," said Wang Tao, a computer analyst with Beijing-based market researcher Analysys International.

The US giant believes many notebooks with the new processors will be sold at a starting price of US$1,000, almost 40 percent lower than it cost to buy a notebook with the first generation Centrino processors, which Intel first unveiled two years ago.

The new processor, known for its wireless Internet connection, adopts a new connection standard with the maximum connection speed raised from the previous 11 megabytes per second to 54.

Integrated into the chips are multimedia functions, such as graphics and audio.

Intel's Yang believes the performance of the new Centrino-based notebooks is already as good as that of desktops, leading many first-time buyers to consider notebooks.

Analysys' Wang said the integration of more functions like graphics and audio into the chips is a growing trend and Intel's move will enable computer makers to save money on components, leading to a reduction in notebook prices.

Wang also said the new processors will intensify the notebook price war as those products containing the old chips will be slashed in price.

Intel said the Sonoma processors will also support the IEEE802.11i protocol, an international wireless network encryption standard.

(China Daily January 20, 2005)