Intel Corporation is brewing the promotion of TD-SCDMA netbooks in the Chinese market in partnership with China Mobile Ltd.

The world's largest semiconductor manufacturer plans to bundle its laptops with China Mobile's 3G data services. Previously, Intel has teamed up with domestic PC maker Hasee Computer Co., Ltd., selling its Centrino 2 laptops with the Wi- Fi services of China Telecom Corporation Ltd.. Abroad, Acer's netbooks have also been connected with 3G Internet access services.

Ian Yang, vice president of Intel, Intel's Sales and Marketing Group, and general manager of Intel China, who is on business in Nanchang, the capital city of southern Jiangxi Province, says he will arrange the discussions with China Mobile as soon as possible once returns to Beijing, the headquarters of Intel China.

Netbooks, represented by Eee PC of ASUSTeK Computer Inc., are one of the most popular PC products in the Chinese market. Computer giants such as Dell, HP, Acer, and Lenovo Group Limited (SEHK: 0992) all promoted their own netbooks in succession.

Some PC makers expect that this low-price, small-sized laptop suitable for wireless Internet access will see its sales reach 15 million units in 2008. Meanwhile, there are insiders worrying that netbooks will erode the sales of laptops like Centrino, which integrates various functions, particularly, when the global economy meets a downturn, and consumers prefer cheaper products.

Intel also had such worries when it first promoted netbooks in China. However, after several months of sales, the feedback from PC sellers is that the users of netbooks are mostly veterans who have already owned computers, and the products will not bring much impact to general laptops.

Just like counterfeit mobile phones, even though they have become popular in China, and are favored by many users, the sales of branded cell phones are still growing. Netbooks are laptops' differentiation and segmentation in terms of functions and prices. A new and larger market takes shape after their promotions, without affecting the existing one.

Ian Yang reveals that Intel has had no worries about the promotion of netbooks. The robust sales of the products are what the company has not expected. The Atom processors specially designed by Intel for netbooks are out of stock once released.

The company plans to enlarge the production capacity of Atom processors, to meet the swelling demands of PC sellers, and publicize netbooks as non-general laptops among consumers, namely, their second computers. Those who want high performance will naturally buy Centrino 2 laptops, while users who only need easy access to the Internet will choose netbooks.

(USD 1 = CNY 6.83)

Source:SinoCast China