Intel predicts tablet market domination

The Atom chip will help Intel to become a dominant player in the burgeoning tablet device market, Intel's chief executive Paul Otellini has predicted.

Answering questions during a quarterly report conference call, Otellini appeared to be taking the tablet space more seriously.

In the past he has said that it was an adjunct to the netbook and laptop markets. His opinion now is that the tablet market has greater growth potential and one in which he sees Intel playing an increasingly major role.

Intel has its eye on the flood of Google Android, HP WebOS, Blackberry Tablet OS and Intel/Nokia MeeGo tablets that are starting to hit the market. Most of them will use Intel Atom processors.

"The big question on everyone's mind is how Intel will respond to new computing categories where Intel currently has no presence specifically tablets," Otellini said.

He then moved on to acknowledge Apple's role in "re-inventing" the format but added that the Atom's support for all other platforms, barring the iPad, would ensure the dominant place he predicted.

This would be consolidated, he continued, when Oak Trail appears in 2011. The new chip will have graphics capabilities built-in and that would make it ideal for thin tablets because of the reduced electronics footprint.

In the past, Otellini has said that he does not see tablets significantly taking the place of netbooks or laptops. He views the new market as being additive because of the restricted functionality it affords.

He also promised further size reductions in electronics with the integration of Infineon technology into the chip. This would add 3G and 4G wireless capabilities without adding significantly to the space occupied by the current processors.

If Otellini's predictions come true, this will add to Intel's current success. The subject of the conference call was the announcement of better than expected earnings which saw Intel's revenues pass the $11 billion (7 billion) mark for the first time.