Will 2011 be the era of the Pad Wars

Intel Plans to be a big part of this in 2011. Intel has won 35 agreements from manufacturers to put its ships into new tablet models to compete with Apple’s iPad next year. Dell, Asus, Lenovo and Toshiba among others have plans to roll out tablets and smartphones powered by Intel’s chips in the second half of 2011.

Intel is so bullish about the coming year they have resumed their stock buy-backs again.

Analysts see Intel's upcoming product news as positive, though they are also taking a wait-and-see approach. "Intel is moving in the right strategic direction but they still have a long way to go," said Gabelli & Company analyst Hendi Susanto. "They're late into the game. There is no clear visibility on what the products look like."

With Intel's growth into the mobile space solidifying for next year, the company is increasingly optimistic. "I'm happy to report that Intel has been back in the market this quarter," Otellini said. "The buy-back has resumed."

Intel has created a new business unit that it calls the netbook and tablet group. The unit will be run by Douglas L. Davis, the current head of Intel’s embedded and communications group, who will be charged with making sure Intel can fend off all kinds of competition in this area.

“Netbook shipments will be heading north of 100 million, and we’ll all soon will find out what kind of market potential there is for tablets and these increasingly popular hybrid designs,” Mr. Kircos said. “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.”

As reported in the New York Times:

When netbooks first hit the scene, analysts were quick to predict possible doom-and-gloom for Intel.

The cheap, little netbooks run on cheap, little chips. And the thinking was that Intel’s profits would sink as people bought netbooks instead of proper laptops with fancier chips.

As it turns, most netbooks were bought as complements to existing computers. As a result, Intel simply sold more chips and piggybacked on computers that played well in some regions that had been cool to the PC.

The netbooks have also boosted Intel’s long-standing push in the education market. The San Diego public school system, for example, has bought 35,000 netbooks for third and fourth graders and is expected to buy 100,000 more as it expands a program aimed at giving all students access to computers.

Tablets are more challenging for Intel.

The iPad from Apple has proved the dominant device in this category, and it runs on Apple’s own ARM chip, the A4. A number of companies designing tablets have eyed ARM chips as lower-power, lower-cost alternatives to Intel’s Atom chip that can still provide enough computing oomph to keep people happy.

But at next month’s consumer electronics show in Las Vegas, a number of Atom-based tablets should appear from the usual suspects and some unusual ones. Intel expects more than 100 netbook and tablet designs based on Atom to hit the market over the next six months