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A new report by Bloomberg, citing unnamed inside sources, revealed Intel’s software for a new processor, codenamed “Clover Trail,” which would give the iPad’s ARM processors a run for their money while preserving battery life in Windows 8-based tablets, is reportedly running into delays.

According to Bloomberg:

Intel Corp. (INTC)’s delayed delivery of software that conserves computer battery life is holding up development of some tablets running the latest version of Microsoft Corp. (MSFT)’s Windows operating system, a person with knowledge of the matter said.

Microsoft hasn’t yet approved any tablets featuring an Intel processor code-named Clover Trail because the chipmaker hasn’t produced necessary power-management software, said the person, who asked not to be named since the process is private.

The delay, following remarks by Intel Chief Executive Officer Paul Otellini, who told employees in Taiwan that Windows 8 needs improvement, underscores how the Wintel alliance that has dominated the personal computer industry for three decades is struggling to respond to the threat of Apple Inc. (AAPL)’s iPad. At stake is the chance to make up for lackluster PC buying by capturing users who are flocking to mobile devices, snappy applications and elegant design.

Software development delays obviously limit manufacturers, as they have less time to prep their tablets for the Holiday season; and thus, they have less of a chance to curb Apple’s 70 percent tablet market share.

“It’s bad news for Microsoft and Intel because it’s not going to present the best light on either one and it will hurt the perception of Windows 8,” said Directions analyst Wes Miller to Bloomberg.

Miller further noted Window’s Clover Trail-based tablets will directly compete with Apple’s ARM-based iPads.

Get the full report at Bloomberg. 

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