SAN FRANCISCO—Intel Corp. is rapidly expanding its presence in the media tablet market, according to analysts who believe Intel's potential to generate sizable profit in the tablet space is underestimated by investors.
In a report circulated Monday (April 29), Ross Seymore, a research analyst from Deutsche Bank Securities Inc., said Intel has a market share of more than 90 percent of Windows-based tablets. Windows-based tablets accounted for a surprising 7.5 percent of the tablet market in the first quarter, according to data released last week by market research firm Strategy Analytics Inc.
Seymore said Intel expects its tablet SoC shipments to double in the second quarter compared with the first quarter as it continues to ramp the Clover Trail version of its Atom SoC for Windows 8 and Lexington for Android.
Source: Strategy Analytics
Second quarter tablet shipments are expected to remain essentially flat with first quarter shipments, according to Seymore. Shipments of Apple's iPads—still the leader in market share—are expected to decline sharply, Seymore said, which implies significant market share gains for Intel.
"We note that Intel had essentially no presence in tablets in 2012 and therefore any presence in 2013/2014 yields share gains and a revenue generator to at least partially offset weakness in the traditional PC market," Seymore wrote.
Windows tablets featuring Intel's Clover Trail Atom SoC are now available at price points as low as $449, Seymore said. These tablets largely negate any bill of materials savings offered by ARM SoCs while offering similar performance and power efficiency, he said.
why is that? I would tend to not argue with you, since Intel has created a monolith org around $150-$300 chip ASPs. But why could it not manufacture and sell $20-30 SoCs and make money, if TSMC and fabless chip vendor can together make money?
Or are you saying that Intel's gross margins would dive... that's different than losing money.
Side note: Good call by previous posts on pricing and margins. Intel is not set up to make money on SOCs yet. If Intel suddenly gained 50% share with SOC, it would lose tons of money. This is clear in the recent earnings announcement showing P&L for group containing SOC program
I didnt realize that this MSS comment is based on surface pro... which is a PC in tablet formfactor. this is a core uP, Not Intel SOC, and we already know Intel is awesome at PC processors.
Intel will dominate the $900 and up PC that "looks like a tablet" market. Which is 100% taken from Laptops.
Thank you ChipMaster or stating the obvious. Strategy Analytics publishes bombastic findings to sell its services - one can understand that misinformation. Why Deutsche Bank and EETimes play is far less obvious.
Tablets and various x-86-based hybrids are apples and oranges -- nobody benefits by confusing terminology.
@Simon7382, I don't know that people are overly negative on Intel. It's just reality that Intel is still struggling for market share in mobile devices. ARM and Android tablets are very low profit margin devices. In order to compete Intel will have lower profit margins as well. As others have noted, nothing lasts forever and X86 compatibility matters less with each passing day.
When are analysts expected to accurately foretell the future? "... Intel was going to have its clock cleaned by ARM" was purely a hype from brain-damaged editors or analysts. Anyone with sane mind and reasonable IQ should have dismissed it when first heard.
At the end of the day, no one formula is forever winning. Every solution has its strength and weakness. Intel was the king of microprocessor. Its position is now significantly weakened. Demised, not for the next 2 to 5 years. Possible in 10 years though. Time will tell.
Just like the ExperiaZ smart phone in general, the new Sony ExperiaZ Tablet aimed at the LTE networks is rapidly gaining momentum in at least Japan. I visited a component supplier for these usits, who told me, that they have been flooded with orders they are now doing their best to expedite! But then again, that's all Android, right?