Intel's low-cost plans

Intel (INTC) is taking a sharp turn toward the development of low-cost PC technology. At a developer's conference this week, the chip giant touted a stripped-down version of the Pentium II, code-named Covington, that targets the sub-$1,000 market. Analysts say it will be a stop-gap product until the arrival of low-cost chips that integrate features like 3D graphics and audio. The company (an investor in CNET: The Computer Network) also revealed it will market chips for low-end computers under a new, separate brand name, even as it develops another brand of chips targeted at more powerful computers.

Intel tilts to system-on-a-chip Intel will continue to integrate features, including 3D graphics and audio, as part of its effort to become more competitive in the low-cost market. Low-cost Pentium II called "kludgey" news analysis Analysts think the stripped-down "Covington" Pentium II processor is an interim measure until Intel delivers a chip tailored to the parameters of the sub-$1,000 market. Grove turns Intel toward low-cost PCs audio CEO Andy Grove reveals Intel will market chips for low-end computers under a new, separate brand name and also develop other new brands.