Ruminations on the electronics industry from David Manners, Senior Components Editor on Electronics Weekly.
Intel Paying A Huge Price for Mobile Market Entry
So a Intel loses a billion on mobile in Q1.
And that’s after only selling 5 million tablet chip-sets.
What will happen if Intel meets its target of selling 40 million tablet chips?
Does that mean an $8 billion loss on mobile for the year?
This programme of paying OEMs to use Intel’s mobile chips seems to be an enormous price to pay for getting into mobile markets.
Intel is not making these tablet chips, TSMC is making them, so Intel has to pay TSMC for the chips and then pay customers to use them.
Bernstein Research estimated that Intel is paying OEMs $50 for every tablet chip-set they use i.e.$2 billion in bribes for 40 million tablet chips.
But could the cost to Intel be more like $200 per tablet chip?Tags: Intel, mobile chips, mobile markets, tablet