Intel reportedly prepping cheaper Bay Trail CPUs; Q3 expectations muted

Digitimes' tablet OEM sources report Intel (INTC +0.3%) plans to launch "entry-level" Bay Trail Atom tablet CPUs in Q2 2014 expected to sell for just $15-$20. Current Bay Trail parts (just launched) go for $32 and $37, prior to a 10% volume discount.

The entry-level CPUs would be more cost-competitive with standalone ARM-based app processors from Qualcomm (QCOM +1%), Nvidia (NVDA +0.1%), and MediaTek, many of which go for $15-$20. If the report pans out, it suggests Intel is willing to further sacrifice ASPs and margins to grab mobile CPU share; as it is, current Bay Trail CPUs have spawned concerns about the cannibalization of Haswell notebook CPUs.

Digitimes previously reported Intel plans to launch several new mobile CPU lines in 2014/2015, including Bay Trail successors codenamed Cherry Trail (Q314) and Willow Trail (Q414 - that ETA seems aggressive).

Meanwhile, sell-side expectations for today's Q3 report are muted. Macquarie, which cut shares to Neutral last week, is concerned about PC weakness, inventory destocking, and "limited near-term gains" from "new initiatives" (i.e. mobile). Cowen says an Asia trip pointed to "low demand visibility" and customer unwillingness to "stock a lot of new inventory."

Wells Fargo is more positive, citing improving monthly sales data from Taiwanese contract manufacturers.

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Comments (1)
  • Ashraf Eassa
    , contributor
    Comments (9709) | Send Message
    There's no way Willow Trail will be launched in 4Q 2014. That may be when it will begin to sample to OEMs who will be prepping designs for the 2015 selling season, but that's not when devices will be available.
    15 Oct 2013, 03:46 PM Reply Like
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