Intel CEO Paul Otellini let us know that it’s possible to make an affordable Windows 8 tablet, provided that it packs the Intel Bay Trail CPU inside. As you probably know, Intel is working on the next generation Atom processor, the quad core Bay Trail.

Intel CEO Paul Otellini delivers a keynote address during the IDF 2010 Intel Developer Forum at the Moscone Center on September 13, 2010 in San Francisco, California

This solution has double the computing power of the current generation chip and also allows all day battery life, which is impressive. The performance is achieved by redesigning the micro architecture of the Atom chip, with Intel bringing it closer to the potential of a full fledged PC. Using an Atom CPU, the new devices may be priced lower, even close to the $200 mark, according to the Intel CEO. Right now Windows 8 devices cost at least $430.

There are even $1000 devices out there and they can’t certainly compete with high end Android devices or iPads, that have much more to offer for a much lower price tag. Bay Trail will be ready to come on several devices by the third quarter, so that’s when the market is due a change. By then we’ll even have $50 Android slates on the market and I’m not even exaggerating, as the component costs are dropping daily….