Intel predicts 40% penetration for Ultrabooks by year end

According to Intel chief executive Paul Otellini, the demand for the Ultrabooks is expected to be huge while he was addressing a conference with analysts. He also believes that the ultrathin laptops could also be 40 percent of the consumer laptop market by the end of 2012.

Otellini also mentioned that more than 70 Ultrabooks are to be released in 2012 and the production will catch the pace by the second half of the year. He also added that the level of excitement among the customers is very high like the demand for the laptops with Wi-Fi networking has taken off in 2003.

Intel has surprised the analysts with big numbers for its investments in capital spending and R&D in 2012. It seems like Intel plans to spend around $12.5 billion on chip factories and around $10.1 billion on research and development.

From those huge figures it is clear that despite of problems like flood in Thailand or slower GDP, Intel is confident about investing in technology infrastructure. Otellini also said that the demand will increase by second half of the year, and currently they are shipped around 1 million units a day.

Otellini also believes that the Thai Flood is going to affect the production in January and February, which will lead to the refilling of inventory in the first and second quarter. The floods have reduced the inventory levels but have not prevented consumers from buying PC’s.

He also added that a PC’s and laptops might be ready for something significant as a lot of convertibles are showcased at the CES. He also said that the sales of the PC’s including the Ultrabooks and even tablets will get boosted as soon as the Windows 8 is launched.

He also mentioned that the company’s Data Center Group, which sells microprocessors for servers, saw a great year and had shown a growth of about 17percent. He also noted China as the largest market currently and it has about 20 percent of demand. 

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