Intel: Tablet Market Will Grow Between 73 Percent and 88 Percent by 2014

Published on May 11, 2010
by John Paczkowski

otellini_pauljpg-150x150Intel CEO Paul Otellini says PCs are “still a growth industry,” which is a bit of an understatement considering some of the metrics he used to back up that claim at an investors meeting today. According to Otellini, the PC market should have a 15 to 16 percent compound annual growth rate (CAGR) over the next five years.

Impressive, to say the least, though what’s more striking is how that growth breaks down. In desktops, CAGR is expected to be just 2.4 percent through 2014. But in laptops and netbooks, it’s expected to hit 22 percent and 15 percent, respectively.

What about tablets? In tablets, CAGR should range between 73 percent and 88 percent between now and 2014.

That’s a pretty staggering metric, though I suppose it’s to be expected in a nascent category that’s been picking up quite a bit of traction recently. That said, the Intel (INTC) chief expects tablets to remain niche devices for the next few years, with sales hitting 50 to 60 million units a year by 2014.

“In terms of the scale of the PC industry, the tablet is relatively insignificant,” he said. “Tablets like netbooks are additive. They’re a new usage model for computing and they are probably good for Intel long-term, but I don’t believe they’ll take market share away from other devices.” (Click on charts below to enlarge.)

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