SAN FRANCISCO—Executives from Intel Corp. said Thursday (Jan. 17) they expect the company to grow sales modestly in 2013 as the company benefits from blurring lines between notebook PCs and tablets and customers design products around new Intel chips.
Intel (Santa Clara, Calif.) reported fourth quarter sales in line with analysts' expectations, but the company's profit for the quarter fell short of estimates. Intel also forecast that sales would decline 7 to 9 percent in the first quarter, a decrease that company executives described as in line with seasonal norms.
Paul Otellini, Intel's president and CEO, told a group of analysts on a conference call following Intel's financial report that he was excited by new tablet form factors and tablet-notebook convertibles at last week's Consumer Electronics Show (CES).
"At CES last week, I was struck by our industry's renewed inventiveness," Otellini said. "PC manufacturers are embracing innovation as we are in the midst of a radical transformation of the computing experience with the blurring of form factors and the adoption of new user interfaces. It's no longer necessary to choose between a PC and a tablet."
Otellini acknowledged that Intel's core PC processor business was hurt in 2012, when PC sales declined in large measure because consumers chose tablets instead. But Intel hopes to catch a bigger piece of the tablet wave in 2013, and the company is actively pushing its Ultrabook concept for low power, ultrathin notebook PCs.
Over the past 12 months, Otellini said, Intel was worked with partners to increase the number of Ultrabooks on the market from roughly 20 to more than 140. Currently, 10 tablets built around the Clover Trail version of Intel's Atom processor are shipping, with several more expected in coming months, he said.
Otellini said he was excited about the portfolio of products that Intel plans to market in 2013. The company plans to launch its first Haswell processor in the first half of the year, which promises major improvements over Intel's Ivy Bridge architecture for form battery life and usability.
Intel also plans to bring to market 22-nm versions of its Xeon and Atom products from the data center and deliver the first 22-nm tablet and smartphone SoCs to customers. Intel also plans to start building the industry's first 14-nm chips toward the end of this year, Otellini said.
Otellini said Intel was well positioned to take advantage of trends in computing in a period of "transition and hyper-innovation."
One of the really nice things about tablets is that they address two markets that have never been very well covered by traditional PCs and laptops. It's the light-weight users; people who primarily consume media. If all a user does is watch movies, browse the Internet and email/Twitter/Facebook people, a traditional PC/laptop is way overpowered and far too complex.
The second market is as a low-cost second PC. The traditional big PC/laptop can be used for heavy lifting while the tablet can be the more casual, truly portable and easy to use device for less taxing uses.
I look at it as a pick-up truck or SUV (desktop PC) or high-end sports car (laptop) vs. an inexpensive economy car (tablet). To a small extent, all three do compete with each other, but only at the common denominator level. They all can move people around, but are optimized for specific purposes.
The PC/Laptop/Tablet world is the same. Thee only reason everyone had a big computer a few years ago was because tablets didn't exist. Those folks were never really full-size PC customers.
Intel will retain it's high percentage of chip sets in PCs and will start to make inroads into mobile (phones and tablets). I also think that as prices come down on ultra books and non ultra book, but still fast and light laptops, PC growth will expand somewhat this year. So yes I can see some growth ahead for Intel.
it would need a guy outside of intel's circle and culture to start shifting the gears in the company, it takes guts and perseverance. my 2 cents, would be to drop the giant ego and start working with smaller companies where real innovation happens, after all necessity is the mother of invention.
Intel is now getting a net margin of 20 % but TSMC is up there with 32 %. How is a Foundry able to maintain so much higher margin compared to the leading IDM in the world ? Can't be all due to Intel's higher manpower & R&D costs
"Hyper-innovation" comes from unexpected sources and small companies. Intel should open up the ways it running business and encourage these small companies to develope "killer apps and products" based on Intel's solutions.
I do not see much of innovation from Intel and its ecosystem with big companies. Ultra laptop is another failure because they are boring and expensive. The focus is back on the new and improved laptop—which is now borrowing features from its tablet cousins.
Unless the personal computer becomes interesting and personal again, it’s going to die.
ARM Holdings stepping up every quarter and relentless working hard to achieve their goals.
Number speaks for itself. Everybody wins with ARM solution. There will be new servers, laptops, and computers for ARM based solutions in 2013, beyond phones and Android.
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