Intel hurt by lack of tablet action

Intel's lack of involvement in the tablet market and the ongoing depression in the corporate PC business have led to a gloomy third quarter

The failure by Intel to break into the tablet market can be seen in its financial performance as the chip manufacturer lost out on being involved with a growth market and had to slug it out in the depressed PC arena.

The majority of tablets use chips from rival manufacturers to Intel, particularly those that have a strong track record providing technology into the mobile phone world, and up to now the vendor has been backing the ultrabook format.

Intel will be hoping that the Windows 8 Surface, which comes out later this month and has pricing similar to the level of the iPad at £399, will help it claw back a share of the tablet market.

But tablets is only one problem with the latest numbers from Intel also showed the ongoing impact of the depressed state of the corporate desktop market with a 14% drop in profits to $2.97bn, year-on-year, and a drop in revenues by 8%.

The revenue drop will not have come as a major surprise because the vendor had been warning it would be down and investors will remain cautious as the noises coming out of Intel about the fourth calendar quarter have been muted.

"Our third-quarter results reflected a continuing tough economic environment," said Paul Otellini, Intel president and CEO. 

"The world of computing is in the midst of a period of breakthrough innovation and creativity. As we look to the fourth quarter, we're pleased with the continued progress in Ultrabooks and phones and excited about the range of Intel-based tablets coming to market," he added.

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