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Intel Has A Bright Future In Tablet Application Processors

Summary

Intel is still a force to reckoned with in tablet application processors.

The Windows 10 2-in-1 tablet market is still a monopoly of the company.

Dual-boot Windows/Android tablet laptops like the Cherry Mobile Cubix Morph are still dependent on Intel Atom processors.

Intel is the third-biggest supplier of tablet application processors. Its x86 processors are ideal for dual-boot Windows/Android tablet/notebook computers.

Tablet computers have evolved into full-fledged productivity tools that deserve more powerful Atom processors like the new T5700 and T5500.

I strongly disagree with Liliputing's speculation that Intel (NASDAQ:INTC) probably won't use its latest Atom T5700 and T5500 processors inside tablets and 2-in-1 computers. The mature tablet market is more viable right now for new Intel Atom processors. The market for Atom-powered Virtual Reality headsets and smart appliances is still nascent.

The current Cherry Trail Atom processor product line needs to evolve to help Intel maintain its third-best ranking in tablet application processors. Although the company stopped subsidizing Atom tablet processors in early 2015, it was still the No. 3 top supplier of tablet processors last year.

(Source: Strategy Analytics)

If we discount iPads, Intel was actually the second-biggest supplier of tablet processors last year. I expect the company to retain its ranking as among the top 3 vendors of tablet processors this year. There's a list of Atom-powered Windows 10 tablet computers that will released this month by tier-1 PC manufactures like Asus (OTC:ASUUY), Acer, and Lenovo (OTCPK:LNVGY).

The tablet application processor market was worth $2.7 billion last year. However, this year's proliferation of 2-in-1 Windows 10 and dual-boot Android/Windows computers is enough reason for me to believe the tablet processor market could end up growing to $3-3.5 billion this year and $4 billion in 2017. Since cheap ARM-based Android tablets are giving way to more functional 2-in-1 tablets, I also expect Intel to get more than 14% market share this year.

My $3-3.5 billion estimate for tablet processors revenue for 2016 is not far-fetched. I googled, and Statista also predicted tablet processors will account for 5% of the $65 billion MPU (microprocessor units) revenue this year - 5% of $65 billion is equal to $3.25 billion.

I opine Intel is not having a...


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