Intel targets developing nations to beat stagnation

Stan Beer
Tuesday, 02 May 2006 16:54

Your IT - Home IT

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Intel's $1bn vision: one billion new PC users
As the old adage goes, the only way to make money is to spend money and, like Microsoft, Intel intends to prove the saying true by spending $1 billion from its war chest in emerging markets. With the PC market saturated to the limit in the developed world, the new frontier is developing nations like India, China and other emerging giants in the developed world. Countries like India, with a huge population, a fast growing middle class and an increasing rate of computer literacy to match seem to be a perfect target for Intel to test out its growth strategy.

The five year plan will see Intel invest $1 billion on pushing cheap computers and the internet in schools and public venues in developing countries. The grand vision is to create 1 billion more consumers. Part of the plan, unveiled by Intel CEO Paul Otellini at the World Congress of Information Technology in Texas, is to supply schools with 100,000 PCs and train 10 million teachers.

Intel will also make funding available for internet service providers in developing nations through its investment arm, Intel Capital.

The strategy of investing in new markets to create growth is a hallmark of Otellini's reign at the helm of the world's largest chip maker and it is not only confined to developing nations. As an example, last year Intel Capital invested $37 million in Australian wireless broadband carrier Unwired to further the development of the WiMax standard, for which Intel is developing the chip set.