Intel ponders netbook strategy with tablet rise

Buyers don't want the cheapest PCs anymore, nevertheless desire snappy performance and better features on their computing devices, said Greg Welch, segment director for mobile client platforms at Intel. Netbooks' early success was in some cases due to low prices, yet now performance is high on the list of buyers' priorities.

Intel has as well introduced Atom chips for tablets and smartphones, markets in which it has virtually no presence. Intel is challenging ARM, whose processors are in most tablets and smartphones. Intel is as well trying to boost interest in PCs through "ultrabooks," which are thin-and-light laptops with tablet features. Chip analysts have predicted ARM will unseat Intel's dominance in the laptop market with its low-power chips.

Close to 80 percent of laptops worldwide use Intel chips, however analysts have said that ARM could challenge Intel with more power-efficient processors that could help laptop makers build devices with tablet-like features. Microsoft has already said its upcoming OS, Windows 8, will work on both the x86 and ARM architectures.