Intel CEO: 20 Windows 8 tablets being designed

Intel chief executive Paul Otellini said today that 20 Windows 8 tablets are being designed by computer makers for launch later this year when Microsoft unveils its new operating system.

To date, strong sales of Apple’s iPad have actually hurt Intel’s sales of PC-related chips, since the Apple tablets and most others use low-power ARM-based chips. But Intel has designed a line of low-power Atom chips using its x86 microprocessor architecture. The system-on-a-chip Atom solution is an attempt to deliver high performance worthy of a computer with the low-power requirements of battery-operated devices.

Otellini made the remarks in a conference call with analysts. Intel reported better-than-expected second-quarter earnings today but warned that third-quarter revenue would be lower than what analysts had expected. The slowdown is because Western European and U.S. demand for computers is weak and not recovering as fast as expected, he said.

Intel is the world’s largest chip maker and the largest maker of PC microprocessors, making it a bellwether for the computer industry. The Santa Clara, Calif.-based chip giant is designing a code-named Clover Trail version of Atom for Windows 8 tablets.

Intel will face tough competition from chip makers such as Nvidia, Marvell, Texas Instruments, Qualcomm, and others. And Intel’s customers will face rivals such as Amazon, Apple, and Google.