Intel CEO Paul Otellini is confident that his company is going to win in the tablet market. Otellini congratulated Apple on doing a wonderful job reinventing the category, and he added that he expects that this new segment will expand the total computer market:
Preempting questions about the oft-discussed cannibalization of the PC and netbook market by tablets, Otellini noted: "We believe that, like netbooks, tablets will expand the [total market] for computing overall."
He did, however, admit that tablets will munch existing markets — but only with nibbles, not chomps: "Will they impact PC sales? Sure. At the margin they probably will. Consumers will have a limited amount of discretionary income, and some will choose to purchase a tablet instead of upgrading an existing PC or purchasing a netbook."
From his point of view, tablet sales will mimic the netbook track: "We saw the same [impact] happen when netbooks were introduced. But three years later, both the PC and the netbook market segments have grown substantially, and we believe that will happen again with tablets."