Intel struggles as it fails to break the tablet market

<p>Intel is struggling as it has not yet cracked the tablet market.</p>

Intel has admitted it is finding the technology industry challenging at present, as it has not succeeded in cracking the tablet market.

The company stated that the weak global economy has also curbed corporate spending on computers over the course of the July-September period, leading to a 14 per cent drop in profits to $2.97 billion (£1.8 billion) year-on-year.

A shift away from desktop devices to portable tablets is a threat to Intel, as most of these gadgets do not use Intel processors, preferring cheaper, more economical chips similar to the ones used in smartphones.

The technology giant is optimistic, however, as president and chief executive Paul Otellini stated: "As we look to the fourth quarter, we're pleased with the continued progress in ultrabooks and phones and excited about the range of Intel-based tablets coming to market."

At close of play on the Nasdaq in New York last night (October 16th) Intel advanced by 2.8 per cent to $22.35 per share.

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