Intel CEO: Your next Windows 8 tablet could cost just $200

by Doug Drinkwater

April 17 2013

Intel CEO Paul Otellini is due to retire in May
Intel CEO Paul Otellini is due to retire in May

Intel’s outgoing chief executive Paul Otellini has hinted that Windows 8 tablet prices will soon tumble to around $200.

"If you look at touch-enabled Intel-based notebooks that are ultrathin...those prices are going to be down to as low as $200," said Otellini, hinting perhaps at more affordable Windows 8 tablets on the horizon.

The Intel CEO, who is due to retire next month, was speaking during a conference call to promote Intel’s earnings for its first quarter of 2013. His comments were first reported by CNET.

Such claims on $200 Windows 8 tablets may however hinge on the success of the chipmaker’s next-generation Atom chip, codenamed ‘Bay Trail’.

The quad-core chip marks a total redesign of Atom – Intel’s current low-power processor - and is also expected to allow tablet makers to push models with an all-day battery life and a chassis as thin at 8mm. Bay Trail chips are also said to offer twice the performance of the Clover Trail chips, which are currently used in high-end devices like HP's Envy x2.

While most Windows 8 tablets typically range from $499 to up to $999, there have been the first few signs that sub-$300 models may be possible in future.

Topeka Capital analyst Brian White recently said that Microsoft is set to reduce the Windows 8 tablet licensees to OEMs by up to 40%, while Creative Strategies’ Ben Bajarin told TabTimes that licensees for Windows Blue – the next Windows update – will costs $40-50, which is some $20 cheaper that the license for Windows 8.

The analyst concluded that this discount to OEMs could see the price of Windows 8 tablets fall to as low as $199 in future.

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