Intel Run to Mobile Devices May Be Too Little, Too Late

But how big a boost is this really? In a letter today, Sterne Agee’s analyst notes that while Intel is indeed increasing its focus on tablets and smartphones, the newest chip from the world’s largest chipmaker will not be available until late this year and will not be included in new products until the first half of next year.

Sterne Agee also points out that the newest chips will be selling at an average price of $20 to $50 each, compared with a $100 to $200 average selling price for the notebook/desktop chip. To make the situation even worse for Intel, the eight-inch tablet appears to be the market’s sweet spot and chips to power those devices may sell for even less.

While PC shipments are expected to remain flat, the Sterne Agee analyst continues to see a compound annual growth rate of around 35% for tablets through 2016 and 2017. However the significantly lower price point for eight-inch tablets urges caution on Intel.