Touch devices to drop to $200, says Intel CEO

Prices of touch devices based on future Intel chips are set to drop like a rock.

A $329 HP Chromebook powered by Intel.
A $329 HP Chromebook powered by Intel. Hewlett-Packard

Touch laptop prices are headed south. Way south, according to Intel executives.

The price of Intel-based touch devices, including laptops, will sink to price points that penetrate inexpensive tablet territory. These new "innovative" designs will be based on Intel's Atom chip, Intel executives said today during the company's first-quarter earnings conference call.

"If you look at touch-enabled Intel-based notebooks that are ultrathin using [Atom] processors. Those prices are going to be down to as low as $200," said Intel CEO Paul Otellini.

Though neither Otellini or Smith mentioned screen size specifically, those price points would imply that at least some devices would use smaller-sized screens.

The competition in the $200 to $300 price range includes Android tablets such as the 7-inch Nexus 7. That uses quad-core chips based on the ARM design from companies like Qualcomm and Nvidia.

Intel's new Bay Trail Atom chip is expected in products for the holiday season.

Otellini also said he expects more standard ultrabook designs based on the upcoming Haswell chip to come in as low as $499.

Updated on April 19 at 1:05 p.m. PST: adds discussion about inexpensive Android devices. Updated throughout.

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