It's pretty clear that Core M is a slot between the 15 watters and Atom CPUs.. Think of it like a more powerful Atom but using all the high end memory and SSD buses on a Core I style setup.. This may sound confusing but imagine a Baytrail Atom with more modern SSD setup and more memory, you'd find it running probably within 15% of a Core M cpu.
For 95% or more of folks, Core M does everything they need in a PC and does it FAST.. The difference between using a 15" MBP and a Core M to most folks will be nearly imperceptable.
Anybody who needs to drive production/media/encoding/musical type applications, there is a reason Apple didn't give the new Macbook a Pro moniker.. It's not Pro enough for that..
This new Macbook is just a machine that Apple made for folks who want all day battery, high resolution, and a no-bs just works mentality. It's basically what the Air used to be.. Now it's the Air that is all confused in the line-up.. the Air has a much more powerful CPU/GPU combo at 15 watts.. but yet still lacks Retina IPS..
The Air with Retina would be the sweet spot for portable-power but Apple just refuses to put Retina in it still.
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That's what everyone was hoping. In actual machines, it's been a massive disappointment. The best I've read about it is that it is passable as long as you don't get too crazy with multitasking. It's more Atom (netbook processor) than Core iX.
Core M has been a massive disappointment because the current machines that employ it, aside from a few still have fans, don't get the battery life Core M promised, throttle more than you'd expect under load (especially the fanless models), etc.. And lastly, because the Core M machines cost as much as a i7 15 watter ULV.. And the 15 watter ULV Broadwells are netting the same battery life as a Core M..
The issue is that it's the new hotness (no pun) to have a fanless machine that is almost 80% the performance of a 15 watter (fan required) machine so manufacturers keep the price the same and hope you buy into the 'fanless' craze.
Me, I love fanless, no dust bunnies, no worries about over-time heat issues (maybe still an issue but going to be far less).. stuff like that is great, no moving parts. this is the future of computing yes.. But if you ask me, i'd wait for 2nd gen Core M.