Intel has been forced to slash the firm's pricing on the newly launched Oak Trail mobile chipset as tablet PC builders have been unwilling to adopt the firm's technology, according to a report by the DigiTimes.
Citing sources within the Taiwanese 'notebook players', the DigiTimes said that Intel was still hoping to persuade HP and Asus to build Oak Trail-based tablets and had reduced the chipset price to price parity with Nvidia's competing Tegra 2 ARM-based chipset.
DigiTimes sources claimed that Oak Trail failed to match the performance of Nvidia's ARM-based chipset and that as a result manufacturers were holding off until the Cedar Trail release in September.
With Intel's Oak Trail based on the x86 Lincroft CPU, it's a better fit for Windows 7-based tablets. Yet the Windows 7 tablets unveiled at CES have been higher end products with hefty specifications featuring Intel Core CPUs rather than the low-power Oak Trail Atom processors.
At the lower end of the market, the general trend has been towards Android tablets and the more logical mating of Google's open source operating system with ARM-based chipsets from the likes of Nvidia and Qualcomm.
The DigiTimes pointed out that Fujitsu, Toshiba and Samsung were alone in adopting Oak Trail in tablet PCs and that the manufacturers were not "showing an aggressive attitude to mass produce models."