Desktop chips back in laptops at Dell

Dell Computer has adopted a controversial notebook manufacturing strategy that many of its competitors dropped last quarter.

Dell plans to release two budget notebooks, built around Pentium 4 desktop chips, in the United States this August. The chip will be included in two of the company's SmartStep series notebooks running at 2.0 and 2.2GHz respectively.

It was widely believed that the practice of using Intel desktop chips in laptops would die following the release last month of the 2.0GHz Pentium 4-M processor. Its release pushed the 1.8GHz Pentium 4-M down in price and the 1.6GHz Pentium 4-M out of production

Intel, which still won't endorse the use of desktop chips in laptops, has interpreted Dell's decision as a marketing rather than technical decision. It said that the rated speed of the desktop chips gives the cheaper machines a more positive image among consumers.

Dell Australia's marketing manager, Rob Small, said it was highly unlikely that the laptops would be released in Australia but couldn't comment on the company's reasons for the move.

Intel desktop chips sell for significantly less than their mobile counterparts, presenting a significant cost saving for original equipment manufacturers (OEMs). The 2.2GHz desktop Pentium 4, for example, sells for US$241, less than half the price of the 2GHz Pentium 4-M mobile chip, which sells for US$637.

Earlier this year the appearance of the desktop chips in portable computers became a potential source of disagreement between Intel and several tier-one OEMs. Intel warned that the chips were impractical for portable applications, drawing more energy and running hotter than its M-series mobile processors.

Toshiba has phased out its Satellite 1900--a common example of the so-called desktop replacement machines on the Australian market. Introduced last quarter, the Toshiba Satellite 1900 was to be Toshiba's sub-AU$4000 system until such time as Intel's mobile processors could be included in a low-cost system.

Toshiba initially included the desktop chips in its budget series laptop to reduce costs, but said it has brought the life cycle of the machine to an end having found an alternative, economical solution in the Intel Pentium 'C' series chips.

The C-designated Pentium 4 chips generate less heat as they're built on a 0.13 micron process. However they have no Intel SpeedStep functionality.

A 1.6GHz version of the chip (the Pentium 4 1.6C GHz) will be used in the Satellite 2400 announced today.

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