Intel CEO To Show New App Stores Aimed At PCs, Phones, TVs

Intel Corp. (INTC) has created a new Web site to offer mobile applications for PCs, smart phones, televisions and other products running its popular Atom chip, part of the company's push to expand the computing abilities of all types of consumer technology, Paul Otellini, Intel's chief executive, is expected to announce Thursday.

During his keynote address at the Consumer Electronics Show in Las Vegas, Otellini will also demonstrate a new smart phone made by LG Electronics Inc. (066570.SE) and based on Atom.

"Computing is no longer confined to your computer--it's everywhere," Otellini said in prepared remarks for delivery to the world's largest tech conference. Excerpts from Otellini's address and other materials were reviewed in advance by Dow Jones Newswires.

The expected announcements come as Intel, the world's largest chip maker, embarks on a major assault of rivals Qualcomm Inc. (QCOM), Texas Instruments Inc. (TXN) and Nvidia Corp. (NVDA) in mobile devices. The company's steps into the mobile application, or app, marketplace and smart-phone category also highlight how the traditional walls separating tech companies appear to be crumbling.

The development is being driven by changes in how consumers and businesses use devices to share information and conduct business over the Internet. Those changes have put long-time partners into direct competition and sent others looking for new markets with higher growth.

Over the past year, Intel has shifted its focus from PCs into the faster-growing markets for TVs, mobile devices and other appliances. Computer maker Dell Inc. (DELL) is developing smart phones, while Google Inc. (GOOG) has attacked Microsoft Corp. (MSFT) with its Android and Chrome software.

Among chip makers, Qualcomm announced Wednesday it is working on a smartbook--similar to a netbook--with Hewlett-Packard Co. (HPQ). And Nvidia showed off several tablet computers at CES expected for sale this year.

Intel's app store, called the Intel AppUp Center, will let consumers download applications for Atom-powered netbooks made by Acer Inc. (2353.TW), Dell and others. App stores, first introduced by Apple Inc. (AAPL) for its iPhone, have been wildly popular, sparking similar ventures from Google and Blackberry maker Research In Motion Ltd. (RIMM). The number of apps users can download, free or for a fee, has become a major selling point for mobile devices, and companies that lack an app marketplace, such as Palm Inc. (PALM), have suffered for it.

The LG smartphone will use a version of Intel's Atom processor known as "Moorestown." The chip is expected to debut early this year, with consumer products hitting shelves later in 2010.

Intel's Atom platform and several new chips in its Core product line unveiled earlier Thursday are focused on offering advanced features for automated teller machines, digital signs and automobile entertainment systems, while also providing PC-like computing power to TVs, set-top boxes and smart power meters for the home.

Otellini is expected to demonstrate how a new set-top box can access videos, TV shows and other apps over the Internet.

Many observers expect that Internet-connected, or "smart," consumer electronics will soon use the Web as their main source of media content. During a press conference Wednesday, Cisco Systems Inc. (CSCO) Chief Executive John Chambers said that in 2013, the networking giant expects video to take up 90% of consumer Internet traffic.

"Computing in the home is rapidly expanding beyond the PC," said Otellini. "New user interfaces and forms of connectivity will change the way we interact with entertainment in the home."

On Thursday, Intel shares, which have risen by more than a third over the past year, dipped 1% to $20.60.

-By Jerry A. DiColo, Dow Jones Newswires; 212-416-2155; jerry.dicolo@dowjones.com

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