After weeks of speculation,
) confirmed using an Intel (
) processor for its Galaxy Tab 3 which will be available globally
in the beginning of June. Samsung's recently launched 10.1
inch Galaxy Tab 3 runs the latest version of the Android
operating system and uses Intel's Atom processor chip based on the
new Clover Trail platform. Samsung's decision to choose Intel over
ARM-based processor and its own Exynos chip family is a
significant win for Intel which has been focusing on increasing its
foothold in the fast growing mobile market.
See our complete analysis for Intel
Intel has been dominating the PC microprocessor market for the
last two decades. The declining global PC shipments combined with
Intel's late entry in the mobile computing space has significantly
slowed its growth in the last few quarters. Intel's ex-CEO
Paul Otellini admitted that refusing a chance to supply chips
for Apple's (
) first iPhone six years ago was perhaps his biggest mistake.
Having entered the market at the start of 2012, Intel's Atom
processors currently power 12 smartphones and 15 tablets.
However, the company has been unable to make a significant mark in
the mobile industry. The Samsung tablet design win can give Intel's
mobility ambition a much-needed push, in our opinion.
Samsung is the leading smartphone manufacturer in terms of
global shipments and is now focusing on increasing its share in the
tablet market. As per research firm IDC, Samsung's market share in
total tablet shipments increased from 11.3% in Q1 2012 to 17.9% in
Q1 2013. In comparison, Apple's tablet market share declined from
58.1% to 39.6% during the same period. Samsung expects to double
the sales of its Galaxy Tab range this year to
approximately 33 million units.
As Intel's processor in general consumed more power, they were
not considered suitable for use in mobile devices. However, it has
worked towards developing more energy efficient chips and its
processors now compete with ARM designs on performance, and
have equal or better power and battery life. Intel continues
to focus on producing more energy efficient chips and adding
features for connectivity and security.
Upcoming Platforms To Help Continue The Growth
Last month, Intel introduced its new Silvermont chip which
promises to offer three times more performance or a similar
level of performance using five times less power compared to
the Atom chips. Intel believes that Silvermont is one of the
biggest chip architecture advances in its history. Intel's
first quad-core Atom SoC (Bay Trail) for tablets and
the Merrifield platform for smartphones will be based on the
new architecture. Both platforms will start shipping in the second
half of 2013.
Intel recently introduced one of the industry's smallest and
lowest-power multimode-multiband LTE solutions (XMM 7160) that
supports smartphones, tablets and ultrabooks. It currently
ships the single-mode 4G LTE data solution, and remains on track to
ship multimode voice and data LTE baseband solutions by the
end of this year. Despite increasing competition, we believe that
an expanding mobile portfolio will help Intel increase
its penetration in the smartphone and tablet market.
Our $27.58 price estimate for Intel
is at a premium of over 10% to the current market price.
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