Over the past two years, the losses of Intel on the development and production of mobile chips was $ 7 billion. In this regard, Intel is going to phase out the subsidy for manufacturers of tablets.
While Apple sells tens of millions of tablets iPad, competing with Samsung and other manufacturers, Intel is spending billions of dollars to flood the market with cheap Android-tablets using Atom processor . For this the company even launched a subsidy program, but next year plans to abandon it.
Over the past four years, Intel has spent considerable sums on something to encourage manufacturers of netbooks and tablet PCs to abandon the ARM-making in favor of Atom processors . Expenses include marketing costs, impressive discounts on devices based on Atom. This year, one of the analysts Bernstein Research said that Intel grants are $ 51 per tablet, which seems absurd, given that most of these devices are sold for less than $ 199. Only in 2014 the discount for manufacturers Intel-based tablets its chips for a total of about $ 2 billion and losses of Mobile and Communications Group, according to analysts Morgan Stanley, will be $ 4 billion.
He added that during the 2015 Intel will gradually abandon subsidies for manufacturers of tablets that will cause a reduction of losses, but the effect on profit, difficult to predict.