Intel's chief executive Paul Otellini predicted that a hybrid of tablet and ultrabook will be "the next big thing" in the tech world.

Mr. Otellini showed off some of the new models of ultrabooks during the annual investor meeting of Intel. These new models of ultrabooks convert into tablets that Otellini claimed as an innovation that redefined the traditional computer. Currently, there are over 110 designs of ultrabooks that are equipped with Intel's new Ivy Bridge processor.

Intel unveiled a prototype design of the hybrid device on the Intel Developer Forum (IDF) in Beijing. It features a full sized keyboard and a sliding screen that can be positioned to use as a normal notebook computer, or slid forward and used like a touchscreen all-in-one PC. The screen can also be folded flat on top of the keyboard into a tablet-style configuration.

Intel did not disclose yet the features and specs of the prototype but the fact that it is based on Intel's new Ivy Bridge processor and can run Windows 8. It is speculated that the device will be app friendly. People in attendance at the presentation reported that its connections include USB ports and an HDMI output.

Intel's line of ultrabook set a series of benchmarks that different manufacturers strived to achieve. With the hardware united by Intel and Microsoft's Windows 8 makes it apt for smartphones, tablets and computers.

Intel aims to produce devices that borrow characteristics from different categories. This includes an ultrabook with tablet sensibilities and smartphones that merge with tabs.

Manufacturers will be motivated to experiment with different form factors as it will allow them to differentiate their offering from rivals. Otellini is professing these hybrid devices will be a big hit.

The hybrid device is expected to be released in the fourth quarter of 2012. If the hybrid models will be released around the same time as the new operating system of Microsoft, Windows 8, this may well be the best way to see if Windows 8 works just as well on tablet devices as it does on a desktop.

Watch how Mr. Otellini showcases the tablet/ultrabook hybrid during the annual investors meeting in the video below.