Feeds

Tablet marketgasm? Don't make us laugh, say Intel chiefs

'I don't believe in this fondleslab bear,' insists Smith

Top 5 reasons to deploy VMware with Tegile

Intel execs poured cold water on overheated predictions for tablet sales today, pointing out to investors that notebook shipments still massively outnumber fondleslabs, and there is little prospect of that changing.

CFO Stacy Smith and EMEA General Manager Christian Morales hit investors with a mountain of data at at an investor conference in London this morning.

Smith re-emphasised the chip giant's determination to drive into the phone and tablet markets, describing what he said would be a doubling of Moore's law across its SoC products over coming years.

While the firm will certainly play in the tablet market, Smith dismissed suggestions that this would be at the expense of the firm's notebook PC business, which is based around more lucrative full fat chips.

There were obvious reasons why tablets could not supplant notebooks any time soon, he said, including security issues and their limited capabilities in producing content.

More tangibly, he argued, notebooks had weathered the netbook storm – itself largely powered by the Intel's Atom range. Surging netbook sales coincided with the financial crisis of 2008, Smith argued. While notebook sales took a dive during that time, once the dust had cleared, it was obvious this was down to consumers and businesses reining back spending, rather than a wholeswitch switch to netbooks.

Secondly, he argued, demographics show tablet sales are currently heavily skewed towards more affluent buyers.

Lastly, he pointed to Apple's own product line, which showed Macbook sales climbing faster than iPads.

The "bear case" Smith said, was shipments of 100 million tablets in 2013 and a "33 per cent cannibalisation" of netbooks, but this would still leave a total addressable PC market growing at 11 per cent.

"And I don't believe that case," said Smith.

While the firm was investing in tablets and other non-notebook mobile platforms, "We believe they're an incremental device."

EMEA boss Christian Morales said tablet sales were around half those of netbooks. "Tablets might sell more than netbooks in Q4," he suggested.

"When you look at tablets, one is selling very well. Another is selling but very behind, and there are a lot more coming," he said.

"The data is the data ... the volumes are notebooks, then netbooks, then other devices." ®

Intelligent flash storage arrays

More from The Register

next story
All aboard the Poo Bus! Ding ding, route Number Two departing
Only another three days of pooing and I can have a ride!
Official: European members prefer to fondle Apple iPads
Only 7 of 50 parliamentarians plump for Samsung Galaxy S
Fujitsu CTO: We'll be 3D-printing tech execs in 15 years
Fleshy techie disses network neutrality, helmet-less motorcyclists
Space Commanders rebel as Elite:Dangerous kills offline mode
Frontier cops an epic kicking in its own forums ahead of December revival
Nexus 7 fandroids tell of salty taste after sucking on Google's Lollipop
Web giant looking into why version 5.0 of Android is crippling older slabs
Dragon Age Inquisition: Our chief weapons are...
Bioware's fantasy forces in fine fettle
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Getting started with customer-focused identity management
Learn why identity is a fundamental requirement to digital growth, and how without it there is no way to identify and engage customers in a meaningful way.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Choosing a cloud hosting partner with confidence
Download Choosing a Cloud Hosting Provider with Confidence to learn more about cloud computing - the new opportunities and new security challenges.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.