There's too many players in the IoT arena already...
Sure, Intel is a heavyweight, for sure, but I don't really see how their products fit in _anywhere_.
Basically, they have two products that I think they'll try to market. The Quark, and the smaller Atoms.
Now, in IoT, you have a myriad of different devices, but they basically break down like this:
1. Very small and very battery-powered. Typically sensors and wearables
2. Larger "sensors". Such as coffe-makers, fridges and everything else people are trying to connect. Power is not a huge issue, nor is size. But price is (as it always is)
3. Border/gateway devices. Basically, it's your WiFi router, but instead of WiFi->Ethernet it's something like ZigBee->WiFi
Now, for (1), Intels quark is batting a solid zero. It's much to large, uses way too much power, and costs way too much. Devices I've designed in this range have MCUs that costs <$1, uses ~3.5uA (with RF), and are ~11 square millimeters.
For (2), Quark or Atom could work, as neither size or power is a big problem. However, price is.. Quarks are around ~9.50$.. And, if an IoT company is already making (1) devices, why not use the same part?
For (3), Atom is a contender, but again, it comes down to price. I'm actually in the process of doing RFQs for a device like this, and the prices I'm looking for is <$4 for the CPU/SoC alone. Atoms start at around $19..
I think that the only way they could offer something interesting would be something like the Quark, but with an integrated LTE Cat0 modem, and a price of about $5. That way, they would be competitive with the upcoming offerings from MediaTek and Qualcomm, but with the added benefit of a very mature Linux port.