Intel Says PC Upgrades to Boost Sector

Intel thinks a rebound in corporate spending on information technology is just around the corner, driven by the need to update aging desktop computers, and the world's largest chipmaker is getting ready for it, an executive said on Wednesday.

"I think you'll see that people are going to have to move (to new PCs) in order to get the support they need," Leslie Culbertson, the company's director of corporate finance, said at the Thomas Weisel Partners technology conference.

Among the factors that will drive upgrades are an aging base of installed computers, an increase in security problems and the fact that Microsoft is dropping support for Windows 98 this year, she said. "No, we have not seen an upgrade cycle," Culbertson said, "(but) we believe it's time for an upgrade cycle."

One area of concentration is wireless, particularly Intel's new Centrino package of processor, networking software and chipsets built specifically for wireless PC applications. Centrino will be available in computers in March, with service in airports and hotels in April, according to Culbertson.

View: Intel Says PC Upgrades to Boost Corporate Spending