Intel's Oak Trail appears to be being greeted with a large yawn by notebook makers. Digitimes did a ring round of its notebook deep throats and found the majority of them were looking at Nvidia's Tegra 2 processor instead.

Intel has replied saying that there were shedloads of OEMS that have signed up to it. However Digitimes has a point. Oak Trail was expected to be seen under the bonnet of tablets, but at CES there was a lack of hardware makers who seemed committed to the chips.

Oak Trail has been adopted by Fujitsu, Toshiba and Samsung Electronics, while this would be seen as a start, none of them have been in a hurry to rush into mass production. HP, which originally planned to launch an Oak Trail-based tablet PC has pulled back from the idea.

To fix this problem Intel is already making price concessions to attract OEMs to Oak Trail. Currently the chip costs $40 which is about three times as much as the Tegra 2, and the company will even give a further discount for large volume orders, the sources noted.

It is starting to look like Intel faces some serious competition in the mobile market from Tegra 2.