Intel and Tablets: Boom or Bust?

As the tablet market grows, Intel may seem poised to profit, as Intel products appear in about 20 tablets. However, this may be misleading because companies like Microsoft are only including Intel chips in their higher-end products. Eric thinks lower-end tablets are where the growth lies ahead, so investors should temper their expectations regarding Intel and tablets.

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Eric Bleeker owns shares of NVIDIA. Jeremy Phillips has no positions in the stocks mentioned above. The Motley Fool owns shares of Intel and Microsoft. Motley Fool newsletter services recommend Intel, Microsoft, and NVIDIA. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


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  • Report this Comment On July 22, 2012, at 8:56 AM, winklerf wrote:

    I only read your blurb, because I don't much care for your videos. Your comment regarding Intel chips only appearing in high end tablets is incorrect. Most of those 20 tablets contain Atom rather than a Core i processor. Microsoft has actually chosen to produce tablets for Win8/WinRT that have the least amount of competition. At Computex there were a lot of Atom Win8 tablets, but few ARM and Core i tablets. I don't know if this is coincidence or not, since Microsoft isn't telling the world exactly what they're up to. However, it does mean that looking at Microsoft for the trend is a mistake while looking at Dell or HP for a trend would serve you better.

  • Report this Comment On July 22, 2012, at 10:35 AM, TMFRhino wrote:

    Hey fidge,

    That blurb is a bit out of context. You're correct that we're looking at both Core/Atom wins. The point put forth in the video was that so far, the tablet world has been more concentrated among "big winning tablets." IE- The iPads, Kindle Fires, and maybe now Nexus... That is, the success of models proportionate to overall tablet spend is pretty concentrated. A high-selling HP model would have very low single digits of global PC share (with HP itself having like 13% last quarter), but tablet models can have much more disproportionate impact. How Microsoft has positioned its Intel Surface - at a higher price level - is a spot where tablets haven't taken off so far. My fear is that to avoid some consumer confusion and position their line-ups, other big OEMs will position ARM-based Win tablets on the low end, and Intel ones at the high-end targeted at businesses. If that's the case, the Intel ones wouldn't have the sell-through many investors are hoping for.

    Best,

    Eric

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