Intel Strives for the Tablets
Intel plans to increase the amount of tablets that incorporate Intel technology from 10 to 40 million in 2014. With computer sells down, and tablet sells on the rise Intel plans to adapt to the market by having more tablet makers incorporate their Bay Trial processing chip instead of the ARM-Processor found in most tablets.
This seems like a simple transition but the Bay Chip requires more materials in order to make it fully functional, so to persuade companies to use their product Intel plans to completely fund the cost of materials. Even Intel CFO Stacy Smith admitted that they will have a “significant increase” in operating loss in order to fund this plan. They are hoping companies such as Samsung will take advantage of this offer and switch to their processing chips.
While it seems like this is a bad idea at face value Intelis planning for years to come as they plan on releasing a new chip in 2015 which should reduce the cost of materials needed to be incorporated into tablets. By then they hope by then more companies will be using Intel brand chips so when they switch to the new model, companies will be willing to pay for the new chip.
So Intel plans to lose money by paying companies to use their processing chips in their tablets, but once successful they plan to release a new, and cheaper chip to start selling to the companies who now use Intel products. It’s clearly risky because they’ll lose a lot of money up front, but if the tablet makers agree to this it could mean a big pay off in the long run for Intel.
Jacob Carpenter is the writer for TSCN.TV and also a blogger under the name JSnakeC on IGN
