One sign that Intel is having trouble dancing to technology's current beat may be the world's most expensive disco ball.
For a company holiday party next month, a handful of engineers assembled a disco ball - with hundreds of small reflective devices - to hang above the dance floor. The mirrors are leftover projection-television chips from Intel's planned effort to enter the digital television market - an effort the company recently abandoned only 10 months after a splashy introduction at the Consumer Electronics Show last January.
The TV effort became yet another in a series of embarrassing stumbles for Intel. The company has publicly canceled a succession of high-profile projects, has replaced managers in money-losing ventures and has fallen behind its keen competitor Advanced Micro Devices in introducing technologies, like a feature that wards off viruses and worms, in markets that Intel has long dominated.
A.M.D. has been so successful in stealing the spotlight from Intel lately that Kevin B. Rollins, the president of one of Intel's biggest customers, Dell Computer, said at a financial conference call this month that Dell was considering adding computers with A.M.D. chips to its product line.
But some of the company's marketing problems may become more acute before they are resolved. Until recently, selling Intel chips was easy: faster was better. Now, Mr. Otellini said, Intel intends to play the same game with the number of processor cores that can be embedded on a chip. The hope is that by breaking problems into parts that can be computed by separate cores simultaneously, chips will continue to offer better performance.
The problem with the strategy is that so far Intel is trailing A.M.D., I.B.M. and Sun Microsystems, who all have their own aggressive multicore chip strategies.
Yet Intel's challenge in entering new markets also runs deeper, according to an engineer who worked on the ill-fated digital television project and insisted on not being identified. The engineer said that the company's failure to perfect the technology, known as liquid crystal on silicon, or LCOS, came from its inability to think beyond its expertise in manufacturing digital circuits. The company's failure was that it did not search for outside expertise soon enough.

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