Intel Drops Consumer Electronics Division

Intel will stop selling digital cameras, media players, and Intel Play PC toys next year because sales didn't meet the company's expectations, Intel confirmed on Friday.

The chip maker says it is "winding down" its Connected Products Division, the part of the company that makes the consumer electronics products.

"We had some success in these product categories, but business overall did not meet our long-term growth requirements. Our intent is to sell through the remaining inventory until the first quarter of 2002 and then quit the business," says Gillian Murphy, a Germany-based Intel spokesperson.

Intel won't disclose the size or location of the remaining inventory, but most products are sold worldwide. One of the products about to be discontinued, the Personal Audio Player 3000, was introduced earlier this month in the U.S. Customer support will be available for "a period" beyond when a product is for sale, Murphy says.

In addition to discontinuing the consumer products already on the market, Intel has also decided not to sell a Web tablet Internet appliance touted by President and Chief Executive Officer Craig Barrett at the Consumer Electronics Show in Las Vegas in January.

"We worked on the concept of a Web tablet device, but decided not to bring it out as a branded product," Murphy says.

Intel's venture into the consumer electronics area was in part an effort to extend the company's brand beyond chips. The slogan on the front page of the company's Web site says: "Music, Pictures, Video. Intel takes technology beyond the processor."

"Content on the Web site will be updated, but for the moment we are still supporting those products. Extending the Intel brand to consumers will continue. The AnyPoint home networking products remain and the Pentium 4 is also a consumer product," says Murphy.