I wonder though if they are taking sales away from android or just from higher end tablets and ultra books. Regardless they had to try to penetrate cheaper markets. Have to wonder what the effect will be on margins though. I would like to pick up one of these eventually, but since I have a tablet and just got a new desktop for myself and a laptop for my wife, can't really justify it now. I would definitely never buy another android tablet considering all the other choices available however.
There isn't much of an overlap - ultrabook sales will lower a slight bit, but BT is mainly for consumers who are completely oblivious to computers in general and only want basic media consumption. For those folks, Bay Trail works great as a low end device with some windows familiarity. Ultrabooks with core processors are for a different demographic. Bay Trail works great as a media consumption device without crazy multi tasking, core processors work for those who want to multitask everything and anything.
Therefore, it's multiple products for multiple uses. It's like having the GTX 650 for the low end guys and a GTX 780 for those who demand power. Those who demand power won't get a Bay Trail. Those who demand power, will get an ultrabook, macbook pro, or something like the Lenovo Yoga Pro 2. There isn't an overlap here, essentially intel is offering something for low end and entry level which it has never done before, and intel HAD to do this.. It's basically having multiple processors at multiple price points. But, intel NEEDED to do this - they could not ignore the proliferation of Android tablets everywhere. It does seem that intel is being successful at selling products for that segment of market, which is great.
Fact of the matter is, Bay Trail is competitive with every android ARM SOC on the market in terms of performance, while the GPU isn't quite as good as the snapdragon 800 it is a very competent chip. And it's selling like crazy. I say, good on intel.