Intel stalls on Centrino Wi-Fi parts

Intel is revising the availability of a Wi-Fi component for its Centrino bundle of chips, marking the second time the chipmaker has delayed its arrival.

A representative from Intel said the combination 802.11a/802.11b part will not arrive until early in the fourth quarter of 2003. The chipmaker initially estimated that the part would be available in the first half of the year. Then, at the company's spring analyst meeting in New York, the company said the part would not arrive until early in the third quarter.

Intel hasn't finished validating and testing the Wi-Fi part, according to company spokesman Dan Francisco.

"Testing and validating is typical of what we do for new parts, and we won't ship anything before its time," Francisco said.

The delay in the 802.11a/802.11b part gives rival chipmakers some breathing room, as many expect Intel's entry into the market to further erode already thin profit margins for all Wi-Fi parts, not just 802.11a/802.11b parts.

Will Strauss, an analyst with Forward Concepts, said: "Ultimately this shows [Intel] can do a great job with processors, but getting into a new market is proving to be very difficult for them."

Strauss noted that Intel became the largest supplier of Ethernet chips by including them on their motherboards, and it appears they are using the same strategy by combining Wi-Fi chips with mobile processors.

Richard Shim writes for News.com