I've wondered before whether Intel's Atom and Core processors would collide at the low end, and whether the company would be able to set up a clear delineation between the two. If Intel can really hit both price points with its two chip families, it appears that won't be a problem.
And Krzanich said as much during Thursday's call. "Let me say our view right now on 'Bay Trail' is that we don't believe it will be cannibalistic in nature," Krzanich said. "We believe what it really does it allows us to get into these markets that we're not in, in a big way today."
The underlying message is that Intel believes that is has essentially won the PC market, relegating rival AMD to the values segment within desktops and notebooks. To its credit, however, AMD has captured all the major consoles and has shown a willingness to design semicustom chips for key partners. Nevertheless, Intel is far more worried about the threat ARM poses in the tablet and ultraportable market, where cost and power are the key metrics.
To date, buyers have been suspicious of heavily discounted tablets and notebooks, precisely because the performance has ranged from disappointing to awful. Intel clearly believes the Atom can change that perception; it it can, Intel will also change the game.