Intel Gaining Share in Tablet Market - 90% Share of Windows-Based Tablets
Shares of Intel (INTC) are up 19 cents, or 0.8%, at $23.58, following a report this morning from Deutsche Bank’s Ross Seymore, who reiterates a Buy rating on the stock, and a $26 price target, writing that he believes the company is gaining share in the tablet market, following last Thursday’s report by Strategy Analytics that tablets based on Microsoft‘s (MSFT) Windows 8 crept up in market share in Q1, to 7.4% from nothing a year earlier. Seymore writes that Intel has about 90% share of Windows-based tablets, versus chips based on ARM Holdings (ARMH) technology. Of course, the vast majority of overall tablet shipments are from Apple (AAPL) and vendors using Google‘s (GOOG) Android operating system, which all use ARM-based chips.
Additional info from latest Barron's report and Strategy Analytics report:
Q1: 3 million Tablet chips for Intel - higher-end Clover Trail chips - price guesstimate - $30 = $90mm
Q2: 6 million Tablet chips (CFO comments - Expected to double) = At least $180mm
Looking good for Intel!!!!!!!
Seymore sees continued share gains for Intel, both in Windows tablets and in tablets running Google’s Android operating system:
Intel expects tablet SoC shipments to double q/q in 2Q13 as the company
continues to ramp Clovertrail for Win8 and Lexington for Android. Overall tablet shipments are likely to be relatively flat q/q (iOS down sharply) which implies significant market share gains for Intel [...] Intel now offers a complete line of SoCs to address both the Win8 and Android markets and product competitiveness will continue to improve as the company brings new SoCs and basebands to market 2H13. Baytrail (2H13) 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. 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.