Market data collected by Strategy Analytics has some positive and interesting trends coming up for Intel Corporation (NASDAQ:INTC), says a report by Deutsche Bank AG (ETR:DBK) (FRA:DBK) (NYSE:DB). According to data published by Strategy Analytics on branded shipments, both Android and iOS emerged out to be the dominant player in terms of market share, but Windows 8 performed above expectations and garnered 7.5 percent of the market compared to zero percent a year ago.
As per the report, the increased market share of Windows 8 tablets was mainly fueled by Intel Corporation (NASDAQ:INTC) platforms. Microsoft Corporation (NASDAQ:MSFT) is marketing its ARM based Windows RT tablet prominently. The tablets based on Clovertail can now be purchased for just $449 and are lighter on the pocket, along with providing comparable performance and power efficiency.
It is expected that Intel Corporation (NASDAQ:INTC) will almost double the chips it shipped in the year earlier quarter. Intel Corporation (NASDAQ:INTC) is working on increasing the efficiency of Clovertail for Win 8 and Lexington for Android. However, the total shipments of tablets are estimated to remain flat on a quarterly basis (iOS down sharply), which again indicates that Intel will be able to gain more traction.
Intel Corporation (NASDAQ:INTC) faces challenges from the large white box tablet market, which is cheaper than branded tablets, and can affect the market share of Intel over time. There are, however, strong possibilities that these white box tablets, which are low cost devices priced less than $150, are demanded mainly by Chinese ARM SoC vendors who are capable of offering low price and support in the domestic market compared to US semiconductor firms.
The chip maker caters to the demand of the full range of Socs based on Windows 8 as well as Android market. The quality and core competency of the product shall get better over time as the company will roll out new SoCs and basebands in the second half of 2013.
Baytrail from Intel Corporation (NASDAQ:INTC) will be a strong product because it will support both Android as well as Windows 8. The tablets OEMs will be able to make their platform designs even easier and provide tablets at just $200. According to the report, presence of Intel in the tablets was almost negligible in 2012 and thus the company’s revenue will be enhanced if it gains tablet market share in 2013/14, which will counterbalance the decline in the market share of PC.
Deutsche Bank AG (ETR:DBK) (FRA:DBK) (NYSE:DB) holds the view that investors are not aware of or are underestimating the ability of Intel to address these next-generation computing form factors (tablets, convertibles etc). The report gives a ‘BUY’ rating to the stock with a price target of $26.
