mannerisms

Ruminations on the electronics industry from David Manners, Senior Components Editor on Electronics Weekly.

The Wages Of Sin

Jolly good results from Intel on the back of the corporate PC resurgence but poor little Cinderella – the MCG (the Mobile and Communications Group) –  had revenues of only $51 million in Q2 even though it shipped 10 million tablet processors.

That’s the effect of contra-revenues for you. It looks as if Intel’s ‘partners’ in the mobile device OEM world are driving a hard bargain in return for embracing x86.

The wages of sin are always high.

So Cinderella turns a loss of $1.124 billion on that measly $51 million of revenues; worse than the $929 million loss on sales of $156 million in Q1.

But there’s relief on the way. Stacy Smith, Intel’s CFO, says: “I think  on a like dollars per unit, it (contra-revenue) comes down pretty dramatically over the course of 2014. And it should be relatively small, if at all, as we get into 2015. And it’s, again, the enablement we’re doing around the bill of materials.”

The $64k question is: without the bribe will the OEMs still use x86?

Related Tech News

Share your knowledge - Leave a comment