Intel Corp (INTC)

[Sarmad]

re the subsidy

I don't know this for sure, but this is my understanding.

Intel wants BayTrail-based tablets to have some high end features, The subsidy to tablet makers is so that they include those higher cost materials or features in their device. So it is not a discount on the price of BayTrail processors. It is a payment to system makers to insure that the over-all system containing BayTrail is a high feature system that can be sold at a competitive price. And Intel would bear the cost of the higher end materials. I think they want to see high resolution displays and more memory in the systems.

Basically Intel wants BayTrail to have a premium image, and is spending what it takes to insure that.