Intel has entered or will enter into these new markets:
- Web TV
- Solid-State Drives
Revenues from these market are really "icing on the cake" as they will utilized manufacturing process already paid for by Intel's core products. For example, all the FABS that are producing Medfield/Clovertrail 32nm wafers would have been paid for by 32nm Sandy Bridge. All the 22nm FABS that will produce BayTrail would have been paid for by Ivy Bridge and Haswell. This is a major advantage Intel has over arm foundries and partners.
It's important to note that revenue from these new markets are in *addition* to their other products, i.e., they're not cannibalizing other sales.
Example: Apple may have cannibalized some of it's own iPad margins by introducing the lower margin iPad Mini.. But Intel selling smartphone chips (at less margin) is not taking business away from any other Intel division.
So how is adding lower margin sales a bad thing when they are in *addition* to all other sales? Answer is they're not. Intel is going to grow BIG TIME.