Intel Spurs Market for Laptop-Tablet Convertibles. But Do Users Care |
Posted: September 8, 2014 |
An employee cleans the screen of Lenovo's new Yoga 2 convertible computer, shown at the IFA Consumer Electronics Show in Berlin on Sept. 5, 2014. Bloomberg News Intel Corp. INTC +0.27% and its device-making customers have tried for years to drum up interest in hardware that combines the features of laptops and tablets, with little success. But they see new reasons to be optimistic. Major technology vendors are describing plans this week for another wave of convertible machines, also called 2-in-1s, that are noticeably thinner and lighter than their predecessors. The devices offer all-day battery life—akin to that of tablets—while delivering greater computing performance. Intel is playing a central role with a new chip called the Core M, its first microprocessor to exploit a new manufacturing process that took longer than expected to perfect. The new chip draws just 4.5 watts of power, less than half that of prior chips in the same class. "The industry has been talking a lot about all of these thin and light devices," said Patrick Moorhead, an analyst with Moor Insights & Strategy. "Core M actually delivers them." Some personal computer vendors on Thursday revealed plans for 2-in-1 computers using Core M, including Hewlett-Packard Co. HPQ -0.21% , Dell Inc., and Lenovo Group Ltd. 0992.HK +2.44% More examples emerged on Friday at the IFA trade show in Berlin, where Intel disclosed new technical details about the technology. Intel, the longtime supplier of calculating engines for PCs, has been grappling since 2010 with the shift in consumer dollars to tablets and away from portable computers. Most tablets now use chips based on designs from ARM HoldingsARM.LN +0.26% PLC. While tablet sales surged, Intel executives predicted that the separate product category would eventually fade as more hardware companies offered devices with displays that swivel from clamshell to tablet mode or detach altogether to serve as free-standing tablets. But customers balked, for several reasons. For one thing, 2-in-1 devices have been considerably larger and heavier than tablets, notes Stephen Baker, an analyst at NPD Group. They are also more expensive. The average price of a standard notebook sold in U.S. retail stores is now about $380, while convertibles cost an average of $580, Mr. Baker says. Navin Shenoy, a vice president in Intel's PC client group, said another obstacle was that the company's mainstream chips drew so much power that system designers opted to include cooling fans—a noisy feature missing from many tablets. "We had this threshold we were envisioning, lusting after," he said. Systems based on Core M don't require fans, Mr. Shenoy notes. They also fit in about half the space of prior chips in Intel's Core line and operate for about 1.7 hours longer on a battery charge with a performance boost of up to 50%, the company says. Some vendors are targeting business users for their initial 2-in-1 devices based on the Core M. One such supplier is Dell, which on Thursday showed a portable starting at $1,199 called the Latitude 13 7000 series that will go on sale in mid-October. The Dell unit features a detachable screen that can serve as a tablet when employees want something lighter than a laptop to take to meetings. "Mobility is no longer sacrificed," said Kirk Schell, a Dell vice president and general manager for commercial client solutions. Mr. Schell acknowledged the uptake of 2-in-1s has been hobbled in the past because many companies don't have applications that take can advantage of their touch screens. But he predicted that would change rapidly. Lenovo says its forthcoming ThinkPad Helix 2-in-1 using the Core M, also targeted at commercial customers, is 17% lighter and 15% thinner than a predecessor product. It starts at $999. Other vendors are targeting the high-end consumer segment. H-P on Thursday announced 2-in-1 models under the moniker Envy x2 powered by Core M, with the least expensive starting at about $950. Even before the latest models appeared, convertibles and 2-in-1 PCs had grown to about 10% of portable PCs in the current back-to-school season, up from virtually nothing the same time last year, Mr. Baker of NPD said. The Core M could spur demand from consumers with thinner hardware and longer battery life, he added, but he questioned whether the capability to emulate a tablet is a big draw. "I don't want my notebook to be a tablet," he said.
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