While Intel and AMD have been making efforts to develop low power processors for use in smartphones and tablet PCs, they cannot compete with solutions from ARM in terms of price, according to notebook makers.

Intel debuted 32nm-based Medfield processors with power consumption reduced to 11W to match Android 4.0 in January 2012 and will launch Atom processors with power consumption of less than 10W specifically for use in smartphones and tablet PCs in the second half of 2012, the sources indicated. In addition, Intel will keep upgrading manufacturing processes, with Atom processors to be progressively based on 32nm Saltwell, 22nm Silvermont and 14nm Airmont, the sources indicated.

AMD is expected to unveil Hondo, a APU with power consumption of less than 5W specifically for tablet PCs, at Computex 2012 and plans to launch a 28nm-based 2W APU, Temash, in 2013, the sources said.

If Intel and AMD can lower prices, their processors in combination with Windows 8 are expected to be sufficiently competitive with ARM's in 2013, the sources said.