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Intel Corp. has huge opportunities with its next-generation Atom system-on-chips with Silvermont micro-architecture. The company will command 75% of Microsoft Corp.’s Windows-based media tablets and 7.5% of Google Android-based slates. Even though new Atoms will ship in quantities of tens of millions of units, Intel’s traditional lines based on Haswell will be more important for the chip giant.

“Intel has made great strides optimizing its Atom architecture for the performance per watt needed for ultra mobile devices. While it is hard to say for sure until we see product benchmarks in customer devices, it certainly appears that the Silvermont architecture announced this week puts the company in position to compete aggressively on specifications,” wrote Joseph Moore, an analyst with Morgan Stanley, in a note to clients, reports Tech Trader Daily.

The analyst predicts that the success of Intel Atom “Silvermont” system-on-chips for tablets will be closely tied to success of Windows 8 operating system on the market. While there will be slates based on Intel Bay Trail-T platform and Google Android operating system, they will not be as popular as x86/Windows products. Keeping in mind that the majority of applications for Google Android run perfectly on low-cost SoCs based on dual-core ARM Cortex-A15, Intel simply cannot offer enough advantages on that market until there are programs designed specifically for x86 or Silvermont.

The market observer models that Intel will ship 36.1 million and 50.2 million Aton SoCs in 2014 and 2015, respectively. Each Atom system-on-chip is projected to cost around $20, considerably lower compared to average selling prices (ASPs) of Intel’s traditional Core i or Pentium products. As a result, financially, Intel will continue to depend heavily on microprocessors for personal computers. Therefore, market success of new PC form-factors is crucial for the future of the world’s largest maker of chips.

“While we are encouraged by Intel’s progress in ultra mobile, the key debate for the stock remains higher-end Haswell architectures, and the next generation ultrabooks that they will enable. If Intel is able to use very innovative form-factors to mitigate tablet cannibalization altogether, without sacrificing its own ASP, it will allow them to maintain traditional profits, which are unmatched by any other semiconductor end market. We continue to view higher end ultrabooks as somewhat challenging; by adding touch panels, SSDs, and thin form-factors, providing high-end detachable and convertible form factors, Intel is adding $200+ to the bill of materials. So, if ultrabooks are going to return the industry to growth, there is implicitly the assumption that PC ASPs will rise, which historically speaking has been a difficult proposition,” said Mr. Moore.

Tags: Intel, Atom, Core, Pentium, Silvermont, Haswell, x86, ARM, Android, Windows, Windows 8, Google

Discussion

Comments currently: 9
Discussion started: 05/16/13 09:39:03 AM
Latest comment: 05/16/13 10:56:24 PM
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1. 
While there will be slates based on Intel Bay Trail-T platform and Google Android operating system, they will not be as popular as x86/Windows products.

Absolute rubbish. Windows 8 is an epic fail. Millions and millions of consumers will not magically drop Android and IOS on their tablets and go to Windows. That is sheer fantasy.
4 2 [Posted by: beck2448  | Date: 05/16/13 09:39:03 AM]
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Windows RT and Android, or IOS are direct competitors, but Windows for x86 (x64) and Android, or IOS are not. Many users use Android, or IOS tablets and desktops, or laptops with Windows for x86 (x64). Unless someone faces choice: tablet or laptop/desktop, there is no reason for which Windows (non-RT) would not be as popular as Android, IOS (each in their own niche).

EDIT: user -> users
0 0 [Posted by: KonradK  | Date: 05/16/13 11:08:24 AM]
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Agreed. x86 and ARM cpus are used for very different purposes (for now anyway),

I bought an Android tablet a few months ago. Besides browsing the web and watch video (data consumption), I don't foresee any changes in how I use it. I can't print from it, I can't code on it. I rarely make user comments on it.

When Haswell comes out, I might get a touchscreen laptop or convertible tablet with keyboard for more productive work. I will even consider AMD's upcoming Kaveri.
3 0 [Posted by: gamoniac  | Date: 05/16/13 01:36:09 PM]
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Even typing my password on a Nexus 7 is frustrating, let alone .. doing any work.
I have not heard too many people saying drop their Window and go to iOS or Android, except for a few houswives and grandma.
0 0 [Posted by: Tukee44  | Date: 05/16/13 10:56:24 PM]
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2. 
75 percent of microsoft's windows based media tablets, sounds like a whole lot of a very little market share! In fact it sounds like marketing speak, but we have seen how these Huge Tablet Market Opportunities have been, with windows 8, RT and otherwise, doing so far! The problem with Intel, is that those huge profit margins, per unit sold, are going to have to go down hugely, in order for Intel to be competitive in the mobile market, and even more so in the emerging markets, where the real growth is! The personal computer market is just about saturated, and even though it will never go away, it does not have any room remaining for the growth it had during to GO GO 90's or '0s! Intel better try to leverage those chip fabs more, before they begin to go idle, and move from cash cows to cash drains! In the mobile world the profit margins are so thin that, in comparsion, the laws of classical physics in the real world begin to break down and become the quantum values of yes and no at the same time, and what this article appears to be saying is, yes there is a growing market and no Intel does not appear to be leading it just yet! But 75% of very little, does not add up to very much of 2 or 5 percent of total mobile tablet sales which MS currently has! Intel appears to be coming to the tablet market a little late, and more than a little behind!
1 0 [Posted by: BigChiefRunAmok  | Date: 05/16/13 01:23:35 PM]
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3. 
We already know that Atom and Haswell are not significant players as neither brings anything special to the table and both have weak performance for new designs, based on actual test results.
2 0 [Posted by: beenthere  | Date: 05/16/13 01:56:03 PM]
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4. 
A marketing blurb by a stock trading co to boost the stock prices. This is a totally cocked up b/s story to fill a page and hopefully to drum up business for the scribes co. The market has already decided that it does not like the O/S. This is just pushing sh-t up hill with ones nose.
2 0 [Posted by: tedstoy  | Date: 05/16/13 03:14:53 PM]
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5. 
...the horror. They will sell milliuns od atoms but they dont care "focus" on them but on core i cpus and when you think that ARM and, or Via is selling only thouse segment chips, you start to wonder. Its propaganda of course , from intel, but they would rather sell core i then atom nevertheless. $$$$
1 0 [Posted by: kingpin  | Date: 05/16/13 04:21:33 PM]
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6. 
What a load of rubbish. This so called analyst is stating the outcome of unknown future events like it is fact. He should be using the conditional tense. But no, this is the usual Intel linguistic programming spin through its unofficial mouth pieces. It would be better to consult a psychic using crystal power for investment advice rather than Stanley Morgan.
2 0 [Posted by: linuxlowdown  | Date: 05/16/13 08:29:32 PM]
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