Intel Corporation (NASDAQ:INTC)-based tablets will be available in the retail showroom by June, and according to a senior executive of the company, the new products will significantly improve total sales. Intel has adopted the strategy of selling chips this year at a loss to gain more market share so future customers will keep using chips without the discounts.
More tablets with Intel chips
Toshiba has announced six tablets and PCs with detachable screens powered by Intel chips, running on Android operating system and Windows. In June and July there will be greater number of tablets based on Intel chips in the market for back to school shoppers, according to Erik Reid, general manager of Intel’s mobile Client Platforms unit.
“It will be a new high-water mark, to be eclipsed by another high-water mark at the holidays,” said Reid, who is managing Intel’s tablet push.
Intel is pushing its way into mobile and other devices as the PC market is continuously declining. Presently, a greater number of tablets manufactured by Samsung, Qualcomm and other companies are powered by ARM Holdings technology chips.
Previously, Intel Corporation (NASDAQ:INTC) CEO Brian Krzanich told Reuters that the company is advancing towards its goal of increasing the sales of tablets chips this year to 40 million units. He said that the chipmaker is on track to achieve the number and hopes to surpass it.
Short term losses for long-term gains
Earlier this week, Intel entered into a deal with Chinese chipmaker Rockchip to manufacture components for entry-level Android devices for Chinese consumers. Intel Corporation (NASDAQ:INTC) has allowed many manufacturers to test its chips in their tablets, and in the effort, the mobile and communication segment of the company suffered an operating loss of $929 million in April quarter on the revenue of only $156 million.
Tablet shipments all over the world from manufacturers for the year 2014 are anticipated to rise 12% to 245 million, a decline from the previous forecast of 261 million as users are retaining their devices for longer, noted research firm IDC. Last year, Intel sold around 10 million tablet chips. Some of the Windows tablet appeared with Intel’s latest Bay trail chips, but these chips did not reach Android tablets. Intel is expecting that China will be a major catalyst to drive the 40 million chip goal for this year, according to Reid.