Intel Chips in Tablets, Smartphones This Year: CEO

Intel chips will be in tablet computers and smartphones later this year, CEO Paul Otellini told CNBC Wednesday.

Intel CEO Paul Otellini
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Intel CEO Paul Otellini

One day after Intel reported record earnings, he said the company is "benefiting very nicely" from the explosion in smartphone and tablet use.

Intel is working on getting its chips into tablets this year and into smartphones "later this year or early next year."

The company is also "very much tied to every device" through its servers, he said.

"Every tablet, every smartphone is very likely talking to an Intel-based server, an Intel-based storage system, an Intel-based networking system," he said.

While personal computer growth has been slow in the "mature markets" of US and western Europe, other markets have more than compensated for this decline.

"We factored in soft consumer retail market in the US and western Europe," Otellini said. "We don’t see that rebounding this year."

What is booming is business in China and India, with Brazil a strong third. The enterprise business is also stronger as more companies start buying newer, more energy-efficient computers.

He acknowledged the company is sitting on a lot of cash but said acquisitions aren't in the immediate future, especially after buying McAfee for $7.7 billion last year.

This year, he said, the company has reinvested its cash by buying back $4 billion worth of stock and increasing its dividend.