With financial and market share numbers sliding, Intel looks to new chip lineup to turn things around

Step one: an overhaul of its processor lines. Intel last week introduced five new versions of its high-end Itanium 2 chips. This week, it formally introduces its mass-market Core 2 Duo platforms for desktops and notebooks. The company will introduce quad-core versions of its processors for servers and desktop PCs this year, rather than next year as originally planned, beating rival Advanced Micro Devices to market with new technology--an increasingly rare coup. The moves are turning up the heat on AMD as the heightened competition cuts into both companies' financials.

Intel is "well positioned for the second half," CEO Paul Otellini says, referring to the new processor lines and revamped organization. "We have reset our entire lineup. We're making good progress in finding ways to improve our efficiency while at the same time delivering the best microprocessors in the world."