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LA Times: Alliance Poses Serious Challenge to Microsoft, Intel

Jun 03, 2000, 19:44 (0 Talkback[s])
(Other stories by Charles Piller)

"Gateway Inc.'s announcement Tuesday that it will use a microprocessor from Transmeta Corp. and the Linux operating system to power a new line of Internet appliances is the latest sign that Microsoft and Intel face serious competition in an emerging world where PCs compete against more simple devices."

"Gateway's products, under development in partnership with America Online, are due out this year. They will be designed for easy Web surfing and e-mail, such as wireless touch-screen-based Web pads."

"Let's call it a warning flag for 'Wintel,'" said analyst Roger Kay with International Data Corp. in Framingham, Mass., using the industry term for the Microsoft Windows-Intel dyad that dominates the PC industry."

"Microsoft may face antitrust sanctions as early as this week, and Intel is trying to develop products for information appliances while it protects a huge franchise in processors for full-fledged PCs. Given such challenges, each industry titan may be losing the initiative in the appliance market to more nimble competitors, such as Transmeta, Kay said."

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