Intel Corp (INTC)

[Unkwn]

Yet, despite the clever accounting (and I'll simply concede your argument and example that "contra-revenue" is simply compensation for a gross competitive deficiency of a product that is equivalent in value to its entire price), Intel has made $0 on the part they sold.

I think the discussion started about Clovertrail+ which is made on depreciated fabs. Intel only mentioned contra revenue with reference to the tablet market and Bay Trail T. Even the BOM issue was mentioned by Krzanich himself as reason for the contra revenue, thus (depending on whether you trust his words, which can obviously be debated) this is not a proof that Intel can't compete pricewise in the low end market (where the discussion started). Besides that, Bay Trail is fabricated on leading edge 22nm fabs, so no depreciated fabs for a while there.

Anyway, I really would like to know how you position yourself in the market, just to get to know your background. No offense intended!