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Intel Corporation Message Board

  • justfine790 justfine790 Jul 17, 2013 10:23 PM Flag

    Baytrail to canablize the cores and hurt gross margins

    Not so fast John;

    John Pitzer - Credit Suisse

    Good afternoon guys, thanks for letting me ask the question. Brian, although early the initial read we’re getting on Bay Trail with your partners is pretty positive, and I think that’s driving a concern in the investment community with whether or not Bay Trail is going to be so good that it starts to cannibalize Haswell, and so I guess I’d like to get your thoughts on how you can segment the market properly, to what extent do you think you’re a slave to market forces and to what extent do you think you can bring applications that are MIPS attentive into the ecosystem and secure the Core business even as you try to get more aggressive in Bay Trail and Atom?

    Stacy J. Smith

    If I can just add a couple of data points on that in terms of what we've seen over the last few years. First off is to reinforce what Brian said. There still is a big gap in terms of performance and features between the best in Bay Trail and the Core i3, i5 or i7 segment of our product line. And if you look at the last three years even in a time where the market's been relatively weak, the Core i5, i7 volumes have been very healthy and if anything we've seen a larger mix overall to Core over that time period. So there still is a healthy segmentation in the marketplace where Bay Trail will play – it will start to expand this into markets where we don't play today. And because of the cost structure we think we can do it with more dollars per unit than we would be able to do if we were going after that segment today with Celeron or even with some of the low end of the Pentium roadmap. So it's a powerful product from that perspective, John.

    Brian M. Krzanich

    At the end of the day, the market will go where the market goes and better to have a product like Bay Trail that we can play no matter where it goes rather than miss that market which if you look over the past was more than it is.

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    • It is the stupidity that from these analysts that amaze me. They really don't understand the PC device market. Look folks, Tablets do not replace PC's they complement them. Stacy Smith answered it well. They control the desktop PC now they are going into new markets. It is an expansion of their market not a replacement. Is that too difficult for these boneheads to get?

    • Baytrail to canablize the cores and hurt gross margins

      What's the alternative ?
      Scrap Baytrail?

      • 1 Reply to semi_equip_junkie
      • Analogy is very clear in the auto industry...

        Corollas do sell a lot, but there are good volumes in Camrys...and Highlanders, Lexus, and so on.
        Substitute Bay Trail for Corollas, i3 for Camrys, i5 and i7 for Highlanders, Lexus.

        Bay Trail will pull people into the showroom. People who cannot afford more will buy Bay Trail. Folks who can afford more will move up to i3, i5, and upwards.

        For a computer that you expect to use at least 3 to 4 years day-in and day-out, it will be crazy to hold back a couple of hundred dollars.

        Again, the key thing is getting people into the showroom...and Bay Trail will do that in spades. The Cores will be up-sell from that point.

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