Intel Corp (INTC)

[Unkwn]

At the moment the Intel Mobile group is putting a billion dollars into a fight which as far as I can see will mainly hurt the PC group.

I can't follow that argument. Bay Trail provides decent margins for the low end PC range. It actually may help to revive the netbook form factor with faster and slimmer, still cheaper devices. Those never replaced PCs but instead extended the range to a new market segment previously not touched by standard Laptops (and Intel made good money with it).

Intel can, by stretching the thermal limits, still increase the performance for those PC variants and add or enable some interfaces needed only for PC operation. They can sell the package for let's say 40-50$ by having very good margins due to the highly integrated package (i.e. the BOM issue).

The mobile group looses quite a lot of money, but on the other hand one has to admit that it was an absolute necessity to have Silvermont help fighting Windows RT in tablets/convertibles and ARM servers (with Avoton). You can watch AMD suffer from not being able to compete in that low power space (there are other issues with AMD as well, I know).