Otellini: Intel committed to winning slate segment

After yesterday’s quarterly results announcement, Intel CEO Paul Otellini hopped on a conference call to discuss the numbers and answer some questions. EE Times says Otellini took the opportunity to "[throw] down the gauntlet" when the subject of slate devices was brought up.

The Intel CEO reportedly stated, "We will use all the assets at our disposal to win this segment." He went on to downplay the iPad’s alleged cannibalization of notebook sales:

"No one knows how much canabalization there is in tablets, but the numbers are relatively small," said Otellini. "In the end, the tablet category will add to our bottom line not take away from it," he said promising announcements of Intel-based tablets running Android, MeeGo and Windows in coming months.

Intel’s Atom certainly seems like a suitable candidate for slates, but Intel is facing a well-established competitor in ARM. Leslie Fiering of Gartner, one of the analysts quoted in the EE Times piece, sums up the situation nicely, saying ARM is "still more cost effective," and that Intel’s performance edge doesn’t count for very much in a market that’s all about compact form factors and long battery life.

Comments closed
    • cegras
    • 9 years ago

    Intel already lost, the iPad has been having free reign for close to a year now.

    • My Johnson
    • 9 years ago

    “Intel believes Moorestown is competitive with existing smart phone platforms in terms of size and power efficiency, but with roughly double the performance.”

    ยง[<https://techreport.com/articles.x/18866<]ยง Just throwing that out there. Seriously, Intel's issue is not the hardware. It's the software. All the good software runs on ARM right now.

    • Thresher
    • 9 years ago

    Atom is just not going to be a winner in the low power market. It’s based on an architecture (x86) that just wasn’t designed for efficiency. They can nip around the edges, but fundamentally, they’re just re-arranging deck chairs on the Titanic. ARM was designed for low power usage from the very start and the performance is easily capable of running slates.

      • sweatshopking
      • 9 years ago

      Man, it’s too bad intel doesn’t have all you haters on its staff. If only you guys could have been there to tell all those engineers! man, what a shame. could have saved them billions

      • Phr3dly
      • 9 years ago

      Let me guess — you’re typing your post on an Alpha, or a Sparc, or a PowerPC, or a one of the many other architectures that was going to kill x86 because x86 was just too complex and could never keep up?

    • hendric
    • 9 years ago

    So does this mean Intel will actually prioritize Atoms vs iX processors and chipsets in their fab? Otherwise, Otellini is full of shit. They had a chance to really dominate the phone market with XScale, but pissed it all away by focusing on the wrong customers and prioritizing their fabs for chipsets.

    Here’s my prediction. Otellini forces the Infineon acquisition to change from ARM to Atom based designs for the next generation. They get some customers outside of Apple. Then the economy picks up, and Intel decides it’d rather build parts with 60% margin vs 50% margin, and so the new Atom designs get squeezed out of the fabs. Customers get pissed when they get placed on allocation and have 32 week lead times. Customers leave for other ARM based designs from Samsung or TI. Intel sells the division at a massive loss. Rinse, lather, repeat.

      • NeelyCam
      • 9 years ago

      Margin matters, but profits matter more. By expanding to cell phone business, Intel can finally grow their revenue, and even if margin drops a bit, profits go up.

      I think that’s why they announced all the extra investment for 32nm fabs; to massively scale up revenue in new markets.

    • Chrispy_
    • 9 years ago

    Am I wrong to presume that no matter how well Intel makes a chip, it is the x86 instruction set that holds back their efficiency?

      • Thresher
      • 9 years ago

      Yep. X86 has been kludged along for years. They keep bolting on stuff to it for this purpose or that purpose, but it will never be as efficient as a chip designed from the bottom up for power management.

    • culprit
    • 9 years ago

    Atom just isn’t really a compelling chip for slates. I’ve been pretty underwhelmed by it in the various netbook forms. It seems there maybe an opening in this emerging market for AMD if they can seize it.

      • dpaus
      • 9 years ago

      AMD’s power management can’t even quite match Intel’s, let alone ARM’s.

        • khands
        • 9 years ago

        It’s the one thing they consistently fail at.

    • sweatshopking
    • 9 years ago

    ARM can’t compete with intel, it’s impossible. Intel’s number one for a reason. ARM’s a joke. Lol at RISC inorder cpu’s.

      • SonicSilicon
      • 9 years ago

      And yet what ended up in smartphones?

        • sweatshopking
        • 9 years ago

        I knew SOMEBODY would bite.

        • NeelyCam
        • 9 years ago

        Let’s see how it is two years from now, m’kay? Smartphone business is still in flux.

        • willmore
        • 9 years ago

        Don’t feed the troll, please.

          • NeelyCam
          • 9 years ago

          You can’t stop me

            • sweatshopking
            • 9 years ago

            lol. neely, i love you man.

            And since when do we use the derogatory term “troll” to refer to one of our longstanding members? I have posted here since you still wet the bed, and you refer to /[

            • willmore
            • 9 years ago

            When they post inflamatory statements that are not backed by any facts for the purpose of eliciting a flame war or an angry response and not to promote a meaningful discussion of the current toppic.

            Plus, I’m pretty sure I stopped ‘wetting the bed’ over a decade before you were born. So, you fail at math as well as colloquy.

            FYI, ARM is a raging success. Possibly your’re not aware of this because your knowledge of computers and electronics is limited to PCs. ARM chips power of 85% of all mobile phones. Not just smart phone, *all mobile phones*. They’re in a much better position to play a big role in the slate market segment than Intel.

            • sweatshopking
            • 9 years ago

            did you read my response? Obviously I was trolling. I actually don’t even LIKE intel, I’m an amd guy, and have TONS of respect for arm. Like I said, I was trolling. AS A JOKE. As for 10 years before i was born, PSSSHHH I’m 25, so that’s obviously not true is it? hows that for math, science man!

            • Final-Reality
            • 9 years ago

            I thought the real obvious troll was “Lol at RISC inorder cpu’s” because its well known that modern x86 processors break their big ugly CISC instructions down into smaller RISC-like ones, and the Atom is still an in-order CPU while Arm’s first Out Of Order A9 core is on its way ๐Ÿ™‚

            • sweatshopking
            • 9 years ago

            as you said with Eagle, arm’s out of order. I figured that would be common knowledge and somebody would call me out on it. I guess these peeps just ain’t up to snuff!

            • adisor19
            • 9 years ago

            The A9 != Eagle.

            Eagle is the follow up to A9 and it looks like TI had a major influence over its design.

            Adi

            • sweatshopking
            • 9 years ago

            I never said A9 was eagle. That’s obvious.

            edit. Oh but buddy did. I know the A9 wasn’t out of order. Gotcha, thanks Adisor, you sexy bastard

            • NeelyCam
            • 9 years ago

            l[

    • blastdoor
    • 9 years ago

    reply fail ๐Ÿ™

    • Hattig
    • 9 years ago

    Today’s shortbread: “Apple iPad is top-selling gadget ever”

    And that’s just one brand of tablet, ARM based. There’s a bazillion Android ones shuffling down the line, and it’s likely the HP Palm WebOS based one will be ARM as well, as the Pre 2 is a 1GHz ARM system.

    • blastdoor
    • 9 years ago

    So I’ve lost track — is Intel making 32nm Atoms? If not, then they aren’t really “using all assets at their disposal.”

      • djgandy
      • 9 years ago

      They will be.

        • blastdoor
        • 9 years ago

        So that sounds like a “no”.

        If Intel really wants to “use all assets available to them” to beat ARM, then Atom needs to be first in line when new manufacturing processes come on line. Intel’s primary potential advantage relative to ARM is their manufacturing edge. If they don’t use that advantage, they won’t win.

          • sweatshopking
          • 9 years ago

          here’s the issue:

          regardless of what you say, i only ever think of the pokemon, Blastoise. It’s a problem for me. any suggestions on how to fix this sickness that seems to be deep with in my psyche?

            • tay
            • 9 years ago

            sweatshop you’re losing it….

            • sweatshopking
            • 9 years ago

            It may already be gone ๐Ÿ™

          • NeelyCam
          • 9 years ago

          I’m sure they are in the fabs already. Intel has enough of a head start with process that cell phone chips don’t have the be the first products coming out from the new fabs.. ARM will still be way behind.

      • Auril4
      • 9 years ago

      If the compact device says Intel Inside, I’m not buying it. The last thing we need in this market segment is ethical misconduct like we saw in the PC market.

        • MadManOriginal
        • 9 years ago

        Yeah, because all the portable device and smartphone manufacturers are just perfect moral angels.

          • dpaus
          • 9 years ago

          With the exception of Apple and maybe Motorola, I’d say they’re practically saints compared to Intel’s recent shenanigans.

          The carriers, on the other hand, make even Intel look like saints…

            • NeelyCam
            • 9 years ago

            And what were those shenanigans? Giving bulk discounts to OEMs so consumers could buy their stuff cheaper?

            • OneArmedScissor
            • 9 years ago

            Welcome to Earth. Population: everyone but NeelyCam.

        • NeelyCam
        • 9 years ago

        By all means keep buying inferior products because of your moral superiority complex. I just hope they were not manufactured by Foxconn, or you’ll might have to burn in hell.

          • sweatshopking
          • 9 years ago

          NOOOOOOOOOOOOO HELL SUCKS!!!!!!!!!!!!!!!!!!!!!

            • NeelyCam
            • 9 years ago

            Tell that to Steve Jobs.

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