Intel Clover Trail To Change Tablet Landscape In Near Future: DB


Intel Corporation (NASDAQ:INTC) might have failed to make an impressive presence in tablets market in 2012, but the scenario may change dramatically in 2013. That’s what Deutsche Bank AG (ETR:DBK) (FRA:DBK) (NYSE:DB) research analyst Ross Seymore believes. The Intel x86-based Windows 8 tablets from a variety of vendors have started shipping after several months of delays. Intel claims that Clover Trail can provide all-day battery life and about a month of standby power.

Intel Clover Trail To Change Tablet Landscape In Near Future: DB

Initially, the Windows 8 tablets were aimed at premium markets with larger displays and prices above $600. However, the prices are coming down slowly as more and more companies are launching tablets to the market. Asus seems to be the first company to launch a Windows 8 tablet with 10.1″ display and 64GB configuration below $500. The increasing competition will further reduce prices of the Clover Trail (Atom)-powered tablets.

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The Intel Clover Trail-based VivoTab Windows 8 tablet is competitively priced against the 32GB Samsung Galaxy Note 10.1 ($540) and Apple Inc.’s (NASDAQ:AAPL) 64GB iPad ($600) both. It is also priced well below Microsoft Surface tablet ($540). Though tablets may differ in terms of expansion options, storage capability and display, the Clover Trail-based devices from OEMs would prove very competitive to vertically integrated suppliers like Samsung Electronics Co., Ltd. (LON:BC94) and Apple

Intel Corporation (NASDAQ:INTC) said that more than 20 Microsoft Windows 8-based tablets would use Clover Trail chipsets. Analysts believe that x86 will take a leading position in Windows 8 tablets and will start making gains on Android platforms. Though nobody can guarantee the success of Windows 8 tablets, any positive sign will be beneficial to Intel

After seeing these signs of revenue benefits, investors start inquiring about its impact on pricing and margin rates. Analysts say the ASPs of Clover Trail would be lower ($45) than Core processors ($100+). However, Clover Trail ASP and GM are similar to previous Atom platforms so they are not a big cause of worry.

Intel is also planning to launch its own TV box before highly-rumored Apple Inc.’s (NASDAQ:AAPL) TV hits the market. Intel television will be more of an entertainment box featuring on-demand media streaming, virtual DVR and free content from cable companies. As the company focuses more on tablets and smartphones, Intel is exiting its low profit motherboard business after almost two decades.

Deutsche Bank AG (ETR:DBK) (FRA:DBK) (NYSE:DB) has Buy rating on Intel Corporation (NASDAQ:INTC) with $26 price target.