Android notebooks with an Intel core processor could sell for as little as $200, an Intel executive said. That's the same price as the Kindle Fire HD and Nexus 7.
Intel has previously hinted it would sell touchscreen PCs in the coming months, and it looks like the company isn't tying itself to Windows 8.
Dadi Perlmutter, Intel's executive vice president and chief product officer, told CNET on Wednesday that the company will sell its own line of atom-powered Android-based devices.
"If you look at touch-enabled Intel-based notebooks that are ultrathin using [Atom] processors. Those prices are going to be down to as low as $200," said Intel CEO Paul Otellini to CNET.
The next processor chip expected to be released by Intel is the Bay Trail, which promises a much longer battery life, faster speeds and twice the performance capability.
The low price point could push Windows 8 out of the way. Windows devices running Intel's more mainstream Core CPU will sell for much higher, in the $399 to $499 range. The advantage of an Android-based device is the touch capability and apps available. Other products at a similar price point, such as the $249 Samsung Series 3 Chromebook and $199 Acer C710, run on Google's Chrome.
The PC industry recently suffered a steep decline in sales for the first quarter, according to analyst firm IDC. Global PC shipments fell by 13.9 percent in the first quarter of 2013 and Windows 8 could be to blame.
"At this point, unfortunately, it seems clear that the Windows 8 launch not only failed to provide a positive boost to the PC market, but appears to have slowed the market. While some consumers appreciate the new form factors and touch capabilities of Windows 8, the radical changes to the UI, removal of the familiar Start button, and the costs associated with touch have made PCs a less attractive alternative to dedicated tablets and other competitive devices," Bob O'Donnell, IDC program vice president, clients and displays, told the Wall Street Journal.
With added competition, can Microsoft make some big changes to its operating system? Whether it can drop the price of Windows 8 is entirely up to Microsoft, Intel says.
"We have a good technology that enables a very cost-effective price point. The price of Windows 8 laptops depends on how Microsoft prices Windows 8. It may be a slightly higher price point," Perlmutter said.
