Intel founds Netbook and Tablet Group

In an attempt to organise itself against the growing threat posed by ARM's dominance of the burgeoning tablet market, Intel has started a new division: the Netbook and Tablet Group.

Confirmed by Intel spokesman Bill Kircos in an interview with The New York Times, the group will be headed by Douglas Davis, currently in charge of Intel's Embedded Communications Group. It's not yet known who will take over Davis' previous role at the company.

Discussing the new group, and the decision to shuffle Davis across to lead it, Kircos claimed 'it makes sense for us to sharpen our focus on these friends of the PC, and Doug's experience running a similar and very successful embedded division makes him the right guy to lead the group.'

Tablet PCs are proving a major growth industry, and with sales expected to reach 19.5 million by the end of the year and almost triple by the end of 2011, it's clear why Intel would set up a tablet-specific group: the threat from ARM.

With the overwhelming majority of tablet systems on the market today, from Apple's iPad to the growing number of Android-based devices that are cropping up at all ends of the price spectrum, running an ARM-designed processor, Intel's rival Atom chip is increasingly shut out - and with ARM starting to make moves on the Intel-dominated netbook market too, it's clear that the company needs to figure out what its response should be.

Further details of the group are not yet available, pending an official announcement from Intel.

Do you think that Intel has what it takes to recapture the tablet market from ARM, or is Intel's time in the sun coming to an end? Share your thoughts over in the forums.