Replies to post #129537 on Intel Corp (INTC)

[wbmw]

Intel has not got the money to engage in a price war like that

Now that's a silly statement. Intel has generated more than $11B in net income over each of the last several years, and even billions worth of cash flow after all the dividends, stock buybacks, etc. They can certainly afford to price themselves into the mobile market; in fact, they can't afford not to.

if anything it would be seen as an opportunity to bleed Intel and eliminate it as a competitor.

It actually wouldn't, since the contra-revenue simply creates a level playing field on the rest of the system costs. It doesn't actually undercut the competitor's pricing on the SOC. With a level playing field and comparable pricing, Intel can win on behalf of other attributes: better sales support, co-marketing, brand leverage, co-validation, reference board design, software expertise, etc.