$100 tablets by Christmas?

Intel CEO Brian Kraznich recently declared that Intel chips will be inside tablet computers that cost less than $100 by Christmas this year. It’s a surprising move from a company that has built its reputation on high end microprocessors. Intel is one of many  companies looking to diversify its output into the mobile market in an attempt to stave off shrinking PC demand, which fell 14% in the first quarter of 2013…

By Eryk Bagshaw

Intel CEO Brian Kraznich recently declared that Intel chips will be inside tablet computers that cost less than $100 by Christmas this year.

It’s a surprising move from a company that has built its reputation on high end microprocessors.

Intel is one of many companies looking to diversify its output into the mobile market in an attempt to stave off shrinking PC demand, which fell 14% in the first quarter of 2013 according to a report from IDC.

This constricting PC market has forced Intel into coming up with inventive ways to not only tap into the US mobile arena but hopefully get a slice of the pie in emerging economies such as India and China.

By setting out to create a processor for a $100 tablet, Intel has given themselves a serious challenge.

Chinese manufacturers have managed to produce some for under $50 but their usability and durability are seriously questionable, even for basic email functionality.

This is particularly an issue when the large majority of the costs of production of tablets goes into the touch screen, it’s hard to see a processor that has capable tablet functionality being produced with the remaining funds.

It’s still unclear which companies will incorporate the cheaper Intel processor, but there is no doubt that a price war will continue in the low-end tablet arena as the PC market continues to shrink.

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