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AMD said its new Llano chip will help it steal orders from Intel Corp. (INTC) in laptop computers by delivering longer battery life than its rival’s products for the first time.

Computers built on the new chip -- a combination of a graphics chip and microprocessor -- will be available this month, the Sunnyvale, California-based company said today. In addition to touting the chip’s battery performance, AMD is trying to convince consumers they need the graphics capabilities Llano offers.

While sales of laptop computers are growing faster than those in the overall personal-computer business, AMD’s market share in notebook computers is smaller than its slice of the desktop PC market. The company is aiming to catch up by emphasizing Llano’s improved battery life, a feature that has hobbled its past attempts to challenge Intel.

“We expect that we will lead Intel in battery life in every notebook form factor,” AMD marketing executive John Taylor said in an interview. A computer using AMD’s new chip is capable of playing two full movies using the highest-quality DVD video on one battery charge, the company said.

The graphics power of the new chip is better than some dedicated graphics cards sold into desktop PCs today, Taylor said. The company purchased ATI Technologies Inc. in 2006 to gain access to a graphics-chip maker.

AMD says Llano’s ability to let users watch and edit high- quality video, play computer games and use multiple programs at the same time is more important than running office software quickly -- where Intel’s chips shine.

AMD fell 5 cents to $7.54 at 4 p.m. in New York Stock Exchange composite trading. The shares have dropped 7.8 percent this year.

The company held 13.4 percent of the market for laptop processors at the end of the first quarter, compared with 19 percent of the total PC-chip market, according to researcher International Data Corp. Intel controls more than 86 percent of the laptop market and 81 percent in overall PCs, IDC said.

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