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.
A large proportion of new iPads are bought by people who owned earlier iPads. The market for iPads, as they stand at the moment, is beginning to saturate - so the proportion of new sales will dwindle. Android pads have a much wider range from small to large, cheap to expensive, and thus a wider potential market - their share (and absolute numbers) will increase for a good while yet.
Windows tablets are quite new, and there is a definite market area for them. But I don't believe the potential share is very high. Windows RT (the "pad" version) has been a total failure - the Windows "pads" that sell are actually Windows laptops with a removable keyboard. These won't go away for a while yet, and they are mostly using Intel processors, but they will not take any sales from Android or Apple customers.
If Intel really wants to get a big share of the tablet market, they should target high-end Android pads.
It wasn't that long ago when word was that Intel was going to have its clock cleaned by ARM. This article isn't saying the opposite, but I think it's a clear indication that the battle is far from over.
At the moment, Intel seems to have the upper hand in processing power while ARM has the upper hand in current draw. I expect the two will keep getting closer for a while before the real battle begins.
"intel lost market share somewhere else to gain the market share here." Yes, but that market share would otherwise have gone to Android and Apple (who get their market share from laptops), which means Win8 tablets are successfully competing against iOS/Android tablets.
Besides, even Apple project lower sales of iPad in Q2 than Q1, with an increasing share going to the less expensive iPad mini.
furthermore, with a SoC processor capable of running Android, Intel will be able to tap into the Android tablet market as well.
Ergo, Intel will be increasing at the expense of ARM/Qualcomm. That's the point!
the 7.5% mainly came from Intel based windows tabs. which are mainly people who switched from notebooks to ultra portable formfactor.. so intel lost market share somewhere else to gain the market share here. Not a great achievement IMO.
"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."
iPad shipments will be declining only in the analyst's imagination. market share. yes maybe.. in any case, the android camp is selling 199$ tabs at-cost making no money for the engineers or the companies(except google/amazon). whats the point?
I agree 100% but the sad thing is the atom costs 4X as much in the 1-3 watt range as even a TI, freescale, or competitor's microprocessor range... $40 is still not bad. But a lot of makers will pick the $13 chip... Of course in volume it's much cheaper for both sides... The only real issue is the price, which is just solved by time and adoption. The quality is there though...
Finally we can stop hearing the mantra that Intel needs to get into the handheld market. Let's hope anyway.
I'm nor sure which of the Surface tablets has caused this turn-around in the trade press reports. If it's the Surface Pro, which to me seems like an improved next generation netbook-like product, that would make a lot of sense. People by now MUST have noticed the limitations of all of the previous tablets on the market, right?
David Patterson, known for his pioneering research that led to RAID, clusters and more, is part of a team at UC Berkeley that recently made its RISC-V processor architecture an open source hardware offering. We talk with Patterson and one of his colleagues behind the effort about the opportunities they see, what new kinds of designs they hope to enable and what it means for today’s commercial processor giants such as Intel, ARM and Imagination Technologies.