Intel could make $200 touchscreen PCs a reality

To give the badly slumping PC market a much-need jolt, Intel is thinking about using one of the most effective tools in its arsenal: lowering chip prices.

Intel chips can make up as much as 33% of a PC's cost, according to supply chain analysis firm IHS. That means the chipmaker has the power to lower PC prices drastically.

It might do just that. On a conference call with investors last month, former CEO Paul Otellini floated the idea of bringing $200 ultra-thin touchscreen notebooks to the market by the end of 2013.

Intel has been pushing the super-fast and super-thin ultrabook. But ultrabook sales have disappointed, with many pundits blaming price points of as much as $1,000.

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