Intel Corp. forecast a weak holiday season, in part because tablets, which typically don't use Intel chips, are cutting into PC sales. Intel is hoping to get more of its chips into tablets, helped by the release of a tablet-friendly new version of Windows. On a conference call with analysts after the third-quarter financial report, CEO Paul Otellini was asked what the future holds.
QUESTION: With the advent of tablets, are we ever going to see the growth in PCs that we used to?
RESPONSE: It's pretty hard to say that in good economic cycles that we wouldn't return to normal growth.
But what I get back to is ... I don't think that the tablet as we have seen it evolve over the last several years is the end state of computing. The innovation is going to start pouring in now that you have widely available (models) on a widely distributed operating system (Windows 8) that will come from multiple vendors that can unleash their creativity.
What I can't predict is what form factor is going to win here. But I do think that some of these things that have sort of the best of both worlds _ the performance and the capability of a laptop and the form factor and convenience of a tablet _ are likely to be the things that are the most high volume runners. But we honestly won't know for 12 months.