........I thought you guys said "contra revenue" would go away by 2015.
This piece claims it will increase in 2015 and averages over $20 a tablet........ me thinks you all have been "Grubered"
Intel decides to keep tablet subsidies, say sources
Monica Chen, Taipei; Joseph Tsai, DIGITIMES [Monday 24 November 2014]
Intel has reportedly decided to continue subsidizing its mobile device processor platform after a series of evaluations recently and will even expand the product coverage from 10-inch and below devices to 12-inch and below ones, according to sources from the upstream supply chain.
Facing domination from ARM-based processor suppliers such as Qualcomm and MediaTek, Intel's subsidies including those for marketing, have helped reduce vendors' costs by around US$20-30 and have attracted vendors such as Asustek Computer, Acer and Lenovo to place orders for Intel's processors, the sources noted.
Although the strategy helps Intel to maintain a share of around 90% in the notebook market, the strategy has taken a heavy toll out of Intel in the mobile device market as the company has generated about US$7 billion of losses from its mobile and communications business during the past two years and will continue to see losses in the fourth quarter, the sources noted.
Internally, Intel has been debating about whether to stay in the tablet market, but the company has decided to push for the market since its absence could impact its PC business and create a hole in its Internet of thing (IoT) lineup, the sources explained.
With Intel planning to merge its PC, mobile and communications businesses, the sources believe the action should effectively reduce the CPU giant's costs as well as sales and marketing expenses.
