As Intel’s PC processor division sees significant declines, the company has predicted that tablet computers could reach price points as low as $150 (£98) by this year’s holiday season.
The company’s chief executive, Brian Krzanich, said that tablet devices, most of which do not run Intel hardware, would be “hitting price points in the touch PC market that we’ve never done before”. He predicted that tablets would be sold at sub-$150 price points and convertible laptop/tablet hybrids at under $400, highlighting Intel’s need to break into the tablet and phone sector.
The decline in the PC market contributed significantly to Intel's latest financial results, which saw profits fall by 29 percent to $2bn and revenues fall by five percent to $12.8bn year-on-year, as the company's vows of gaining a foothold in the mobile market are given "highest priority".
Krzanich, overseeing his first financial results since he took the position two months ago, said the company would be putting more effort behind chips for mobile devices and ultra-light laptops in a bid to tackle the declining sales in PCs.
He said: "Intel Atom and Core processors and increased SoC integration will be Intel's future. We will leave no computing opportunity untapped. To embrace these opportunities, I've made it Intel's highest priority to create the best products for the fast-growing ultra-mobile market segment."
Intel's PC group saw revenue fall by 7.5 percent year-on-year, somewhat less than the predicted 10 percent decline of the overall PC market that analysts predicted earlier in the month.
Intel's latest Haswell chipset launched in June with promises of significantly improved battery life while maintaining performance, but the company still finds its mobile processors in few phones and tablets.
Intel’s next foray into the mobile computing market will be led by its Bay Trail family of processors, which look to unseat the dominant ARM-based chips used by the majority of phones and tablets.
Krzanich admitted that his company was slow to respond to mobile trends, saying that it has "not always lived up to the standards" it set for itself. But he also said that he was confident that the company would find a solution under his leadership.
"In my first two months as CEO, I have listened to a wide variety of views about Intel and our industry from customers, employees and my leadership team and I am more confident than ever about our opportunity as a company," he said.
Intel forecasted an increase in revenue in the next quarter, expecting to take around $13.5bn as it looks to gain foothold in other markets.
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