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Intel's Q3 Earnings Beat Expectations, But Outlook Still Grim

By Kristin Bent
October 16, 2012    7:10 PM ET

Page 2 of 2

Ultrabook sales, which have been lighter than Intel's initial projections, are expected to get a boost when Windows 8, Microsoft's highly-anticipated new OS, launches on Oct. 26. Intel's Otellini re-emphasized that Windows 8 will usher in a new generation of Ultrabooks poised to spark consumer demand, including those featuring new touch capabilities and convertible form factors.

"I'm very excited about [Windows 8], as I said earlier. It brings touch into the mainstream for the first time and, as we know, over the past couple of years, tablets have changed the paradigm for people to use computers. They like touch," Otellini said.

"So I think we haven’t had a chance to really judge how the consumers will embrace this in mainstream PC space or not, but I'm very optimistic," he continued.

Ultrabook prices, which traditionally have been more higher-end, are also expected to reach more "mainstream" price points over the coming months, Otellini said, which could also fuel demand.

Otellini also stressed during the call that Intel has many times undergone major market transitions and emerged unscathed. The current industry shift, in which smartphones and tablets are, in many cases, showing traditional PCs the door, will be no exception, he said, with Intel remaining optimistic about its future.

"In general, I see the computing market in a period of transition, but also a period of breakthrough innovation and creativity. Intel has a history of navigating the industry's transitions and emerging better and stronger," Otellini said. "With a hardware and software road map that spans the smallest portable devices to the most powerful data center servers and world leading silicon process technology, we are excited about our future."

PUBLISHED OCT. 16, 2012

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