Intel chops Consumer Electronics business!
By
Mike Tomkins
(Monday, October 22, 2001 - 14:50 EDT)
World's largest chipmaker 'disconnects' its Connected Products Division...
Intel Corp., the world's largest maker of computer chips, will discontinue its 'Connected Products Division' which manufactures consumer electronics products such as digital cameras, digital audio players and more. Manufacturing of a wide range of products such as the Intel Pocket Digital PC Camera, Intel Personal Audio Player 3000 and Intel Play Digital Movie Creator (all three of which only began shipping less than three weeks ago) will cease immediately.
Existing stock of the products, which Intel predicts will last through the start of 2002, will be sold and supported as normal. The Connected Products Division will be shut down, and employees of the division will be placed in a redeployment program which seeks to place them in other jobs with the company, but offers severance packages if this cannot be done within a certain time.
Products which will be dropped from Intel's line include: - Pocket Digital PC Camera
- Pocket PC Camera
- Pro Video PC Camera
- Home PC Camera
- Easy PC Camera
- Pocket Concert Audio Player
- Personal Audio Player 3000
- Digital Movie Creator
- QX3 Computer Microscope
- Computer Sound Morpher
- Me2Cam Virtual Game System
- Wireless Series Keyboard
- Wireless Series Mouse
- Wireless Series Gamepad
Other products which will be discontinued include the Intel Web Tablet, which had not yet started shipping, and the Dot.Station internet appliance of which 250,000 units had been sold to an America Online joint venture in Spain.
Intel initially founded its Connected Products Division in 1998, intending to create peripheral products which would help boost demand for its core line of computer processor chips. A company representative stated that the closure was due to lack of long-term growth potential. Intel has recently initiated cut backs in or shut down divisions to concentrate on its core business, including Intel Media Services (streaming video hosting) and Intel Online Services (web services). It has also discontinued its Rex personal organiser PC card.
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