Intel CEO Downplays Tablet Cannibalization, Explains Weak Consumer PC Spending
You won't catch many power users trading in their gaming notebook or desktop for a tablet PC. Tablets are fun, useful, and convenient, but in our minds, they're complementary products, not replacement PCs. But what about mainstream folk who are only interested in hopping online to browse the Web and sort through emails? It's conceivable that certain segments would choose a tablet over a notebook or desktop, and with consumers not spending as much on PCs as of late, is it fair to say that tablets are cannibalizing PC sales? Intel CEO Paul Otellini tackled that question head on.
According to an AP report, Otellini was asked during a conference call what he attributes weak consumer PC spending in the U.S. and Europe to, and whether he thinks it's due to tablet cannibalization, macroeconomic worries, or Windows 7.
"I think it's a little bit of each of those, but I'd add one more, which I think is a big one," Otellini said. "Remember in 2009 and the first half of '10, during the depths of the recession, the consumer notebook market worldwide, particularly in the U.S. and western Europe, was very strong, and it was strong contrary to GDP at the time. Remember, GDP was going south and consumer sales were going north. And I think what happened is that people bought a lot of machines in that time-frame and that we're still just early in the cycle."
Otellini's comments make sense, but only time will tell if he's right with his assessment. In the meantime, Intel doesn't appear to be willing to leave anything to chance. ARM and Nvidia (in that order) are currently the go-to chip makers for tablets, though Intel is also making a bid with its Oak Trail platform. Tablets built around Oak Trail are expected to start shipping next month.
Image Credit: Flickr (sam_churchill)
Comments
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whathuhitwasntme
April 22, 2011 at 7:17am
back to the orginal rant here
I do not use verizon or at&flee
I have a sprint epic android phone that is pretty much unlimited in its use. I have unlimited data, yeah not a cap to be seen. Unlimited text, and free any mobile to any mobile calling anytime. Yes, my "phone" calls are techinically limited to 3000 minutes a month between 7am and 7pm but honestly 90% of my calls are to other mobiles so I used 300 minutes last month towards my "limit". I do not even have a house phone anymore! Just dry loop DSL, no phone.
I like the phone, it works great, hell if it made coffee it would be damn near perfect! So I just don't see your rhetoric making any sense from where I stand.
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Modroneman
April 21, 2011 at 11:45am
Dude. Seriously! Whenever I read any articles by Paul Lilly, all I see are grammar errors. It's really annoying and takes away from his otherwise great articles. Seriously... Get a better editor!
"You won't catch many power users users trading in their gaming notebook or desktop for a tablet PC."
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steven4570
April 21, 2011 at 2:04pm
How about making contructive comments about the articles content rather than just point out a grammar error. Yes, there was a word typed twice...its not like he did it on purpose.
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Modroneman
April 21, 2011 at 9:53pm
As you can see, they corrected the mistake. How's that for being constructive! :)
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someuid
April 21, 2011 at 9:41am
This is where Apple's closed ecosystem benefits them. They can quickly combine their market research, hardware and software divisions, and sales channels to put a product in their customer's hands.
We, meanwhile, are futsing around, waiting for the major OS houses and hardware manufacturers and integration houses to get something out.
For a while, Apple's closed ecosystem fought against them - they did not have the massive backing of 3rd party hardware and software companies churning out products that allowed Apple's products to penetrate markets that Apple themselves could not get around to or simply didn't notice or care to support. Windows did and it took Windows to heights Apple could only dream of.
It seems Apple has caught the whole Windows world with their pants down. Our key players, being established and looking to hold on to their market share, have failed to see the possibilities of new products and markets.
As a result, we all sit here, waiting for Intel and Microsoft to come up with something, with Google kicking something out, and Motorola enjoying their relationship with Verizon to try and screw us with data plans rather than just put the goods in our hands at prices we like.
Whether you hate Apple or not, they are kicking our tails in the mobile market. Microsoft can't get their Zune/WindowsCE/WindowsMobile/WindowsPhone to do anything but fail. Intel can't get their heads out of their butts and develop a real CPU/GPU/chipset combo to take on Apple. HTC, Motorola, et all can't seem to combine the right hardware and the right software without getting in bed with Verizon and hobbling our devices with lockdowns and costly plans. Lightweights Nvidia and ARM are considered risky bets by the integration houses because they don't want to piss off Intel and Microsoft, or can't due to lock-in contracts.
I say: go Apple! We need a good meltdown in the Windows World to remind Otellini, Balmer, et all that they best get cracking on innovating and stop worrying about tracking every penny of profit or coming up with wonderful excuses on why it isn't their fault they don't have great sales. It is time for some creative destruction to burn out the old fuddy duddies and stop playing catch-up with Apple.
Don't haul out your "look at my Android - it is sooo much better". It's a freakin' phone and that's that. It's a one off product, locked down by the wireless carriers, with nothing but minor improvements in the pipeline. It is not a sutiable challenger to the empire of consumer devices and services Apple is building.
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