Intel is expected to lose 7 billion dollars to reduce Android subsidy

When it comes to mobile devices like smartphones and tablets, arm's architecture is widely used by Qualcomm, Apple, and Nvidia. Intel has also been trying to get a foothold in this area, but Intel is not performing as expected. Intel has previously offered subsidies to OEMs to convince tablet manufacturers to use their products and even to pay for possible costs in the process of redesigning the motherboard to fit the Intel chips, the source said. While this method has some effect, it costs Intel a lot, and Morgan Stanley analyst Joseph Moore says Intel will stop the subsidy. Stacy Rasgon, an analyst at Bernstein, said Intel's subsidy for each tablet was up to $51 trillion, and that the subsidy was indeed high given that some low-end Intel Android tablets were priced at just 199 dollars. Intel's 2013 mobile chip lost $3 billion trillion and is expected to lose $4 billion this year, according to sources. A total of 7 billion dollars in losses is a bit too much for Intel, Moore wrote: "We expect Intel to gradually reduce its tablet subsidy next year, which will further reduce losses, but will also significantly reduce Intel's momentum in the tablet sector." Reducing losses either requires a big increase in revenue or a big cut in spending, and it's unclear what Intel will be. (Via:ubergizmo)