Why underdog Intel might have the last laugh in tablets

April 29, 2013

Deutsche Bank’s Ross Seymore notes that Intel sells about 90% of the microprocessors/application processors for Windows 8 tablets which are starting to show some sales kick after a slow start.

(The notable exception to Intel is on the Windows RT side where Microsoft’s Surface RT and other RT tablets use processors from Nvidia and Qualcomm based on ARM chip designs. Apple and most Android tablets also use ARM-based chips).

In a report today spotted by Barrons, Seymore says new chips from Intel will appeal to tablet makers.

“Baytrail [due out the second half of this year] should be a compelling product as it uniquely offers support for both Android and Win8 enabling tablet OEMs to simplify their platform designs and hit price points as low as $200,” he said.

“We note Intel had essentially no presence in tablets in 2012 and therefore any presence in 2013/14 yields share gains and a revenue generator to at least partially offset weakness in the traditional PC market. We continue to believe INTC’s ability to profitability address these next-generation computing form factors (tablets, convertibles etc) is underestimated by investors.”

Last Thursday Strategy Analytics said that tablets based on Windows 8 gained market share in Q1, to 7.4% from nothing a year earlier.


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