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The price of Windows 8 touch devices, including laptops, will sink to price points that penetrate inexpensive tablet territory, according to Intel CEO Paul Otellini



From CNET:
Earlier this month, an Intel executive in China said Bay Trail will be "the most powerful Atom processor to-date, doubling the computing performance of Intel's current-generation tablet offering" and will allow designs "as thin as 8mm (0.3 inches) that have all-day battery life and weeks of standby."

Though neither Otellini or Smith mentioned screen size specifically, those price points would imply that at least some devices would use smaller-sized screens.

The competition in the $200 to $300 price range includes Android tablets, such as the 7-inch Nexus 7, using quad-core chips based on the ARM design from companies like Qualcomm and Nvidia.
 Windows 8 touch devices to drop to $200, says Intel CEO