Intel launched its portable audio player yesterday, marking a strategic departure for the world's largest semiconductor manufacturer. Pocket Concert is expected to be the first of several consumer products from the company.

Craig Barrett, Intel's chief executive, is due to demonstrate two more gadgets this week at his first keynote address at a consumer electronics trade show in Las Vegas.

Several Wall Street analysts yesterday welcomed the strategy as a way of mitigating the impact of a slowing personal computer market. Shares in Intel rose 3%, or almost $1, yesterday morning.

The shares have more than halved in the last three months as a series of profits warnings focused attention on weakening demand for personal computers around the world.

Gartner Dataquest is among several research groups to have lowered its revenues estimates for the semiconductor sector this year from 27% to the low 20s.

Other evidence of slowing demand came when Dell and Compaq, computer manufacturers which account for about a quarter of Intel's sales, issued profits warnings towards the end of last year.

Intel faces an uphill battle in the highly competitive market for portable devices in the US. In launching Pocket Concert, Don Whiteside, general manager of the company's connected products division, said the use of Intel technology in portable music devices would "provide consumers with a trusted brand option and an enhanced audio experience". The company also hopes to increase the use of personal computers through the adoption of more portable devices which need material to be downloaded to them.

Last year, Intel increased its advertising to raise awareness of its brand using its "Intel Inside" slogan. The push into the consumer electronics market, which is expected to include an instant messaging and email device and a wireless mini-laptop, is an attempt to capitalise on this increased consumer awareness.

The new products, expected to be launched this year, have been called a ChatPad and WebTablet.

The Pocket Concert, which has 128 megabytes of memory, will provide up to four hours of music and more than 20 hours of spoken-word audio. It will also have an FM radio. With an accessory kit, the device is expected to cost $349.99 (about £240).