“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.”