More new consumer gadgets from Intel. I'm Fred Fishkin with Bloomberg Bootcamp. When you think of Intel... .you probably think of Intel Inside... as the company's slogan goes. The processor. But the company has also created some great high tech toys for kids... that attach to computers. A microscope, a camera and a sound morpher. And there are toys for grown-ups too. The latest... .the Intel Pocket Concert Audio Player. With 128 megabytes of memory, it can store more than four hours of digital music and plug into a car or home stereo system as well. Neat stuff, but as CEO Craig Barrett points out... .processors are the company's bread and butter...

"That's about 80 percent of our business. About 20 percent of our business is networking and communication devices. A very small fraction is consumer electronics."

So if it is such a small fraction... why does Intel bother making toys and gadgets like this...

"We do it to stimulate the 80 percent of our business. To make that PC business more exciting, to bring the consumer more exciting capabilities. To find new users and new uses for the PC. We've been doing this for ten years."

And Barrett says the strategy works...

"We've had our venture capital investment, something called Intel capital where we fund four or five hundred companies a year to bring new and exciting technology in the marketplace. We try to really stimulate the market, make it more exciting, make it grow. As the pie gets bigger, we get bigger."

And that's why Intel is making high tech toys. Bootcamp, I'm Fred Fishkin, Bloomberg Radio.