Intel is attempting to make Android tablet makers an offer they can't refuse as it seeks to finally gain ground in this product category.
That was the message from Intel CEO Brian Krzanich on why his company is looking toward working more with companies on the Android side of the business and less with its long-time partner Microsoft.
"Our mix of OSes reflects pretty much what you see in the marketplace," Krzanich said during Intel's quarterly earnings call. "In the first quarter we saw solid growth in the data center, signs of improvement in the PC business, and we shipped 5 million tablet processors, making strong progress on our goal of 40 million tablets for 2014."
If the company hits this number it will have around 30 percent of the tablet market, as about 130 million tablets are expected to ship in 2014. In 2013, the company shipped about 5 million tablet processors.
Krzanich reiterated that Intel was not abandoning Microsoft-powered devices. However, that company has struggled to gain traction in the tablet space space, grabbing only about 10 percent of the market, so it only makes sense to go where the business is growing. This is not going to be an easy task for Intel as ARM-based tablets are the industry norm, but the company has a plan to gain some ground.
It has been offering discounts and development funds to companies, enabling them to develop products that use Intel processors. In addition, it will be rolling out several new processors designed for tablets this year, including its Cherry Trail and Merrifield. For the smartphone and low-end tablet market, Intel has its Sofia chip that is expected to be ready this year.
In Intel's traditional side of the business, the company reported continued declining orders for PC processors and warned that its projected shipments into this product category could be off as the year progresses.
"Demand could be different from Intel's expectations due to factors including changes in business and economic conditions; consumer confidence or income levels; customer acceptance of Intel's and competitors' products; competitive and pricing pressures, including actions taken by competitors; supply constraints and other disruptions affecting customers; changes in customer order patterns including order cancellations; and changes in the level of inventory at customers," the company said in a written release.
