Intel: We Sell 1 Million PCs a Day Now, iPad 'Insignificant'

CNET has an interesting story about Intel CEO Paul Otellini's appearance at the company's annual investor meeting. He had some choice words about the success of the PC market--which is now selling over 1 million PCs every single day--and addressed some of the recent silliness over the iPad supposedly "killing" the netbook. Check this out.

"In 2010, for the first time, PCs cross a million a day. A million PCs a day--built, shipped, and sold in the industry. By 2014, that number basically doubles, it approaches 700 million units (annually) as the near-addressable market for our company," he said during an event that was streamed on the Web.

And within five years, Intel expects to be shipping a billion chips per year in all device markets, he said.

Addressing the market for Netbooks--small, inexpensive laptops built around Intel's Atom processor--he said Intel expects good growth ahead. "This market (Netbooks) that we created will grow north of 20 percent year-on-year this year. It's got a 15 percent CAGR (compound annual growth rate). Still no sign of material cannibalization of the notebook market by Netbooks," Otellini said.

"(Netbooks are) in the range of 40 million units (annual) and nicely growing," he said.

Otellini also had a lot to say about tablets. "On the scale of the PC industry, they're relatively insignificant. My personal belief is that tablets, like Netbooks, are additive. They're a new usage model for computing. I don't think they will take market share away from other devices," he said.

The market for computing "in units...will grow 15 to 16 percent over the next four years. The PC is still a growth industry."

Discuss this Article 27

panache1023
on May 12, 2010
The significance of the iPad is that Intel is even mentioning it at all.
Keleko
on May 12, 2010

iPad is not a PC.  No one at Apple has claimed it was.

Also note that Intel has said they are definitely planning to participate in a tablet market that competes with the iPad.  If it were "insignificant" then they wouldn't see a need to do that.

DRWAM
on May 12, 2010

I agree with the comments above. iPad seems like a big iPod Touch and will probably compete with those. The netbook and Win Tablets have much more functions than an iPad, so many, though not all, would not be comparing the them for a purchase, IMO. But then again, many of us at this site don't give two craps about iPad, iPod or iPhone sales. The rest of you seem to be obsessed in each direction pro and con. Perhaps you need idesensitization ;)

Ocean
on May 12, 2010

I suspect that in the end there is just one statistic that Apple is interested in when it comes to the iPad.

Can anyone gue$$ what that $tati$tic might be?  :)

yipcanjo
on May 12, 2010

Who is going to listen to the "iPad is insignificant"-type arguments?  The consumer?  No way.  The Apple fanatic?  Of course not.  The investors?  Perhaps, but that's about it.  Otherwise, this just reeks of the Ballmer "iPhone is a cute toy"-type comments, that were obviously wrong.

To be fair, I don't have (or want) an iPad, and I think that the media coverage is ridiculous -- including this piece.  That said, I own a netbook and basically never use it due to the small screen rez and underpowered CPU.  It does a lot of things that an iPad cannot, but it doesn't do anything particularly well.  I think the netbook industry is going to continue to die down for these very reasons.  Is an iPad-like device the answer?  Maybe for *some* of those questions, but certainly not the role that the netbook is TRYING to fill.

They just need to make better netbooks.

rr0de74@live.com
on May 12, 2010

I agree the iPad is a media consumption device.  Apple never claimed it was a PC but they sure did say it was a netbook replacement by comparing the two and saying netbooks do nothing well.

The iPad will be a big success because it does do media consumption very well.  It will take Google and MS probably 2 years min to come out with a competitor.

I think netbooks may take a small hit for those that use their netbook as a media consumption device primarily but they will be just fine.

subzerohitman721
on May 12, 2010
When I upgrade my devices in the future, there's no way you can sell me an underpowered, minimalistic, & overpriced iPad. The iPad is what it is. A Sub-Netbook tablet. That's exactly what it is. To call an iPad a netbook is insulting to a netbook, because a netbook actually runs a real desktop OS. Even Leo's experiment to replace Macbook for an iPad failed. Why? Because you can't print & 99% of humans need a printer. I don't think the printed document goes away just because Steve Jobs says so. Remember all the talk about the iPad being a "Kindle Killer?" Whoops, didn't happen. Take an iPad outside in Dallas' beautiful 82 degrees party cloudy skies. See the glare on that screen, right in your face? Reading an iPad's glossy screen in the bright sun doesn't translate to reading success. Looks like the Kindle's aren't going anywhere. So it doesn't replace a Kindle, doesn't replace a netbook, doesn't replace a laptop, & it doesn't replace a desktop. Some people will find a use for the iPad. Power to them. For the rest of us, those of us who actually have a good notebook or netbook, the iPad is useless. You can't run real desktop software to get useful work done. Most screens out there still have better or equal resolution to the iPad. The storage, processor, & system doesn't have what it needs to be a device replacement tool. This is more of a supplementary device, but in my opinion an unnecessary luxury. If Google, HP, or Microsoft can make a tablet that gives you all the notebook functionality & an simpler OS to handle it, that's the real win-win. A tablet has to replace a netbook or a notebook to break out to mass market success. So far, the million iPad's sold so far, is people who generally would buy Apple products. My theory it's part of the 35 million or so Mac users out there. The true story is when iPad sells 70 million units. Then it will truly be a success. However, I suspect there will be some serious upgrades & features added before it gets that high. It won't be this useless extra device in it's current form.
DRWAM
on May 12, 2010
yipcanjo, check out the Lenovo x100 and x200 series. They are in the netbook size range, but have better power. One of my partners just ordered the x100. I'll comment [when appropriate], about it's performance if I ever get my hands on it, but I bet there are a few sites that have some reviews if you search for it.
Killsocket
on May 12, 2010
I'm not an iPad person at all. I can't see a significant use for it myself. I do "lean" Apple though. But what I don't get is if this thing is so insignificant, why is there all the fuss to tell everyone so? Let the product die an insignificant death if that is truly what happens. If it takes off, why should a PC person (be it Paul or ANYONE) care??? I could care less about Netbooks myself, but I am glad its an option. Not that iPad is a netbook and vice versa, but an iPad is just another option for someone. Who cares? Isn't human nature to only talk about things that are threats? I hate comparing Apples and Oranges, but there is more talk about an insignificant product like iPad than there is over a "significant" product like Zune.
Killsocket
on May 12, 2010
I see what you did Paul. I couldn't find a single instance of "iPad" used in the article. Please correct me if I am wrong. The word was "tablets". Does this mean the PC "iPad" equivelants too? HP Slate I think.
Dude1313
on May 12, 2010
Otellini also had a lot to say about tablets. "On the scale of the PC industry, they're relatively insignificant. Fun with headlines on a Wednesday Paul?
Waethorn
on May 12, 2010
I think the biggest mistakes are that the iPad has no integrated handwriting recognition software, and no stylus. Most Tablet PC uses in corporate environments are based on handwriting input, and you certain can't feasibly do that with your finger. Most of Apple's "creative users" that they like to milk are also alienated because they can't even paint or draw without buying a third-party stylus, and even then, have you seen these things? There was a demo of Autodesk SketchBook Pro on YouTube, and the guy was sketching a design for a bike, but the stylus had such a big flat tip, that it looked like the guy was using a worn out crayon to draw with. It just looked awful. If a stylus could be made with a more pointy tip that wouldn't scratch the screen, that would be better. I wouldn't care if it had a battery in it for the conductivity, but I'd want precision more than anything.
rmansfield
on May 12, 2010
I have trouble believing that a new device which sells a million in a month can be said to be insignificant. Comparing the iPad to traditional computers is apples to oranges at this stage. Again, a million in a month not bad for a new product. In fact, it's great; and from the shortages, I can only assume that even Apple underestimated how many iPads would sell in such a short time. I have no doubt that Otellini would be singing the iPad's praises if it had an Intel chip inside.
NoNameAtAll
on May 12, 2010

"I have no doubt that Otellini would be singing the iPad's praises if it had an Intel chip inside. "

That should be a given. Remember, the corporations.

Besides, you can't say Intel hates Apple. Since they provide for the Macbooks and stuff right now.

chipwinter
on May 12, 2010

The head of Intel is merely cheerleading to the company's investors;.

And why not dismiss Apple? In the past five years, Apple's stock has risen more than 600% while Intel's has fallen, Apple's market cap has gone from a small percentage of Intel's to double Intel's and Apple's revenue has gone screaming past Intel's despite Intel reporting their best earnings ever.

He's just trying to keep Intel investors in the fold.

rr0de74@live.com
on May 12, 2010

@subzero "To call an iPad a netbook is insulting to a netbook, because a netbook actually runs a real desktop OS"  This reasoning is so flawed.  The iPad proves that a full OS is NOT the right choice for a tablet device aimed at media consumption.  Every time I read "the iPad needs a full OS" I laugh out loud.  Ask HP if they think a mobile OS or a computer OS is better for a tablet.

How can you say the iPad is not a Kindle Killer?  The iPad has only been available for what 60 days?  Once the iPad has been out as long as the Kindle has when the iPad launched then lets look.  I think the Kindle is going to get hammered.  Some people will still pick it because of eink but I but the iPad out sells it 5 to 1 in a year.

DRWAM
on May 12, 2010

Wae, there is at least one free speech recognition iPad/iPhone app by Nuance Dragon Naturallyspeaking, that will allow you to dictate and edit, then send as an email or text message as well as save to clip board. It works pretty well.

whiplash55
on May 12, 2010

Maybe there's something to the rumor that Apple is talking ti AMD, and Intel knows it.

I couldn't imagine Apple going to inferior chips, AMD's chips are not competitive at the high end right now.

Clearly this market has room for more than one winner,  Apple has to be ecstatic over their iPad sales. Intel is making the best chips in the mainstream market, but what do they have for true mobile?

Backup77
on May 12, 2010

Netbooks are only going to get better over time (faster CPU's\more RAM & sharper displays) and I would prefer to have a small PC that I can get work done on rather than pay a lot of money for something that is not much more than a pure entertainment device. I have to agree with subzero's comments above.

Dr. Daniel Jackson
on May 12, 2010

The iPad may or may not matter, that debate is a waste of time, but ARM certainly is NOT insignificant, and thats who Intel should keep an eye on.

"Addressing the market for Netbooks--small, inexpensive laptops built around Intel's Atom processor--he said Intel expects good growth ahead"

What if  (big what if)  Windows 7 and a core set of apps was compiled to run on ARM, would manufactures still chose Atom for low cost net books? The average consumer doesn't care whats under the hood as long as you can get your work done. Intel v PPC in Macs proves it. If the HP Slate is really dead because of Atom's shortcomings, will HP deliver a ARM netbook/tablet? It would be interesting to me at least, not as much with WebOS, but still pretty cool.

You can say that the iPad is not significant and I completely agree, but the hardware it is based on is fantastic, and that too will only get better.

OFF TOPIC BTW: To the guy that asked about flashing Android, check out XDA forums, a lot of phones are supported over there with some really cool builds, and not just Android, some pretty cool 6.1/6.5 builds too.

rr0de74@live.com
on May 12, 2010

"Netbooks are only going to get better over time (faster CPU's\more RAM & sharper displays) and I would prefer to have a small PC that I can get work done on rather than pay a lot of money for something that is not much more than a pure entertainment device."

And there are just as many people that dont want a keyboard in the way and want a pure entertainment device....see game console.

Its OK for both to be a hit with consumers....really it is.

Dr. Daniel Jackson
on May 12, 2010

"Maybe there's something to the rumor that Apple is talking to AMD, and Intel knows it."

My personal belief is that is more about ATI, than its about AMD, moving to Intel is the best thing that Apple ever did, and if they went to AMD or a combo of both, they would be a "PC" maker just like HP and Dell and they couldn't justify selling their "PC's" for such a premium price.

I have always been a Nvidia guy, but ATI putting out some pretty nice cards lately.

Waethorn
on May 12, 2010

"I couldn't imagine Apple going to inferior chips, AMD's chips are not competitive at the high end right now."

AMD's chips certainly aren't inferior in the mainstream and budget market.  Show me an Intel quad-core processor in the ~$100 price range and we'll talk.

What AMD brings to the table for Apple is a unified platform for multimedia - something that Apple has always embraced.  AMD did have a power efficiency crown with the first dual-core processor on a single slice of silicon.  They weren't the first to market with dual-core - Intel was.  What they did was provide something that was based on superior designs to Intel.

Now AMD is the innovator, and Intel is offering the better designs.  AMD is bringing premier multi-core technologies to the masses though, with the first (and only) six-core processor in the sub-$200 price range.  If Apple wanted to push multi-core application development into the mainstream, they would be better suited to AMD's technology.  Even though Intel is pushing raw power with the high-end I7's, they are still lagging behind in offering competitive platforms for multi-core, and people seem to forget that it's Intel that has pushed hard for multi-core software development.  It's like the lost child, just like BTX, Verified by Intel, Viiv, IA64, and a host of other technologies and platforms that they've lost sight of and given up because they never had a good marketing message behind them.

AMD is pushing hard with "Vision" though.  They already have SATA 6Gbps, and Intel is lagging behind.  AMD's chipsets have superior onboard graphics.  And most 800-series chipset motherboards are shipping with USB 3.0 support.

AMD has a multimedia-centric, multi-core platform that would be great for Apple, its developers, and its users.  To get an integrated chipset with decent onboard video with Intel, they'd have to stick to Core 2 Duo with the 9400m chipset because NVIDIA has no integrated graphics chipsets for Intel Core iX CPU's.  It's no wonder the Mac Mini hasn't been upgraded to a new Intel CPU, because they'd have to use a Core i3, which has integrated "Intel HD VIdeo" which is a step down from the 9400m.  Discrete graphics isn't an option for the Mac Mini due to its form factor.  I could understand if Apple was waiting to update the Mini and low-end MacBook until a new partnership with AMD is started.  NVIDIA said that they won't likely be doing integrated graphics chipsets for Intel Core iX due to the contract dispute - only discrete options.

Oh, and just FYI:  a stock Athlon II X4 630 gets a 7.4 out of 7.9 on Windows 7's CPU WEI score.  It sells the aforementioned ~$100 price.  4GB of DDR3 RAM in an 890GX chipset board (<$140US) gets 5.9 for RAM (you won't get any higher unless it's more than 4GB), and a single SATA 6Gbps HDD gets 5.9 (for higher, you need RAID or SCSI).  Graphics with the o/b Radeon HD 4290 gets in the mid to high 4's, which is fine for light gaming, 1080p HD video, and of course, Aero.

Waethorn
on May 12, 2010

"there is at least one free speech recognition iPad/iPhone app by Nuance Dragon Naturallyspeaking"

Speech recognition is ok, but unless it can be activated with the background audio service in iPhone OS 4, it's practically useless.

System-wide access to speech and handwriting recognition is a necessity.  There should be an API for that...

TEAMSWITCHER
on May 12, 2010

Here we go again!  Apple comes out with a new product and everybody calls "Insignificant!"

When the iPod was released people said it would soon be replaced by cheaper devices - that never happened and people are locked into the Apple ecosystem - thanks to the RIA no less.

Then the iPhone came out and every one said it was over hyped and would be replicated by other phones.  I still haven't seen an iPhone Killer yet - sorry.  Droid comes the closest, but still needs more time to bake, and I don't think that Apple is sitting on their hands either.

Then Apple starts selling super futuristic, aluminum clad, dream Macintosh notebooks.  These computers basically sell themselves with their drop dead looks, impressive specs, and innovative features  - as opposed to the sticker-covered plastic , bouncy keyboard and tiny trackpad, butt ugly PC laptops.  Now Apple owns (yes owns) the retail laptop market over $1000.00.  

So now we have the iPad, the Apple tablet 1.0 and everyone here is predicting its premature failure.  Have you all been stuck in World Of Warcraft for the last 7 years?

Dipsh t Admin
on May 13, 2010

Actually this is all sour grapes by Intel.  Intel demoed MID's in 2007 I believe (?) and has not highly commercialized it or has tried to make a more agile Atom geared towards that kind of device.  Of course, they have been left with an extremely lucrative and still growing chip business for "grown up" computers from the still growing netbook on up.  However, they have nothing to compete with ARM or Snapdragon powered devices.

DigDug
on May 13, 2010

"But what I don't get is if this thing is so insignificant, why is there all the fuss to tell everyone so? Let the product die an insignificant death if that is truly what happens. If it takes off, why should a PC person (be it Paul or ANYONE) care??? I could care less about Netbooks myself, but I am glad its an option. Not that iPad is a netbook and vice versa, but an iPad is just another option for someone. Who cares?"

There's been some rumblings lately that the iPad is cutting into netbook sales. Most of those netbooks run Intel Atom processors. This was an investor meeting for Intel. Those investors are probably wary that the iPad is chipping away at netbook, and hence Atom sales.Hence, Intel addressed it and said that, in comparison, the market for the iPad is still extremely small. Does that help explain why there is "all the fuss"?

I think netbooks and touchscreen devices will inevitably coalesce into the same thing. They're aiming for the same market, ultraportables. And no one will want to carry both with them all the time. That said, I'll be really surprised if Apple stands on top when the dust settles either.

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