By contrast, emerging markets such as China, India and Brazil are growing fast and becoming more important for Intel, Otellini said. Today, China is the top PC market, while Brazil is the third largest, he said. Intel's revenue from China grew by 12 percent year over year, while India revenue went up 21 percent in the quarter.

In a bid to take on tablets and reinvigorate interest in PCs, Intel is pinning its hopes on ultrabooks, which the company is promoting as a new category of thin and light laptops with tablet-like features. The first set of ultrabooks have already been announced by Lenovo, Asus and Toshiba, with prices starting at $899.

But the average price of an ultrabook is $1,000, , especially with consumers looking for discounts in the slumping PC market. However, ultrabooks are still in their early days, and prices will continue to drop as development gains ground, Otellini said.