Is Intel a one-hit wonder?

Two and a half years ago, I wrote an article entitled Intel: The one-hit wonder. My conclusion, at the time, was that Intel's business and operating model--built around its dominance in PC processors--is a trap that has kept the chip giant from competing effectively in hot markets like communications and consumer electronics.

With Intel Developer Forum in full swing in the city by the bay, I found myself wondering, has anything changed since I wrote that story and is the conclusion still valid? In my opinion, the answers are no and yes, respectively.

Don't get me wrong. Intel is still the world's 800-pound chip gorilla. It's actually made quite a comeback from a tough bout of market share loss to perennial rival AMD. The Centrino brand is killing in the mobile Wi-Fi space and it's working feverishly to duplicate that success with WiMAX.

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