CES Keynote by Intel's CEO

On Tuesday night, Paul Otellini, who has been at Intel (INTC) for more than 30 years and the CEO since 2005, delivered his keynote speech at the Consumer Electronics Show (CES) in Las Vegas; as expected, he spent time talking about the company’s plan for moving into the smartphone/tablet markets in a big way. Here are some of the highlights from Mr. Otellini’s remarks:


Otellini – The world is “moving from the era of the personal computer to the era of personal computing”


“Intel founders understood that the transistor is the most important game changer in technology”; Intel, which released 32 nanometer technologies in 2009, is currently working on 14 nanometer chips.


“You’re smartphone has more computing power than existed in all of NASA in 1969.”


Only 10% of mobile activity is related to making phone calls; “when Intel thinks about mobile phones… we think of it as another computing platform.”


Otellini - “The best of Intel’s computing is now coming to smartphones… and it’s coming first to China, the largest market for smartphones in the world.” With that, the company introduced the first smartphone powered by the Intel Atom processor - the K800 (hardware from Lenovo), which will be available in China starting in the second quarter of this year.


As for a secure experience (which Intel has looked to strengthen via their acquisition of McAfee), the benefits and security that users have got used to on their PC’s will now be available on their smartphones, an area that might become increasingly important as more commerce, banking, and other security-sensitivity activities are completed on mobile devices.


The Intel Reference Design, which they were previewing during the keynote, is already a leader in many categories (such as browsing or energy-efficiency) when compared to current phones on the market; as Mr. Otellini still made clear, “we’ve only just begun with applying our technology to smartphones”


Motorola & Intel jointly announced that they have entered into a multi-year, multi-device partnership around smartphones and tablets; expectations for the first Intel based Motorola device is for later this year, roughly summertime.


Mr. Otellini showed the first public design of a tablet running on Intel’s technology with a preview of Microsoft’s (MSFT) software, Windows 8; “the combination (of Windows 8 & Intel) promises to bring great new experiences to tablets.”


Ultrabooks – “they’ve created quite a bit of excitement” in their short period of time on the market, with more than a dozen designs shipping today from partners like Samsung, Dell, and others.


Dell (DELL) announced during the keynote the XPS 13, which is “bringing the ultra book experience to life”, with a 13” Gorilla Glass (made by Corning) display and a weight of less than three pounds; the company will start taking orders in February (no pricing details were given).


Mr. Otellini also displayed a device that is essentially a mix between a laptop and a tablet; the ultra book that he showed off, with a screen that can slide over the keyboard for a tablet-type experience (and comparable thickness), looks like something that could blur the line between different form factors and grab the attention of value conscious consumers who aren’t looking to buy multiple devices.