Windows 8 tablets did surprisingly well in the first quarter, boosting Intel's share of the market from practically zero to around 7 percent.
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.