Intel will provide subsidies to manufacturers to boost Tablet PC share

In Tuesday, Intel CEO Blaine Clannick Brian Krzanich said in an effort to boost market share, Intel plans to subsidize manufacturers this year to encourage them to use Intel chips on tablets. Clannick says it wants to avoid the same expensive strategy as smartphones.

Having lagged behind rivals in the mobile sector in recent years, Clankney has given Intel a 2014-year target of 40 million tablet PCs using the company's chips, a significant boost from the previous year's 10 million targets.

To achieve the goal, Intel will provide some initial engineering cost subsidies to manufacturers that develop Intel's chip tablets, in the hope that they will continue to use Intel chips in future devices. Most tablet computers now use ARM processors.

"We have made great strides in tablet computing," Clannick told the media ahead of the Intel Annual Developer Forum in San Francisco. "We've grown from nothing to a real tablet maker." ”

Investors are bullish on Intel's prospects, partly because Apple's ipad, which was launched four years ago, has largely bottomed out as global PC demand has fallen. This year, Intel's share price has risen 35% per cent, well above the 8% rise in the S & P 500 index over the same period.

Intel has not disclosed how much subsidy it will provide to tablet manufacturers. In the second quarter of this year, Intel Mobile and Communications Division's revenue of 51 million U.S. dollars, a year-on-year decline of 83%, operating losses as high as 1.12 billion U.S. dollars, which reflects the company to the smart phone and tablet development in the area of difficulty.

Clannick said he wanted to avoid expensive subsidy strategies when setting a 2015-year target for Intel's smartphone chip. Intel's upcoming Sofia smartphone chips include a 3G version for emerging markets and a 4G version for mature markets. "This is a product that is positioned at the right price," Clankney said. ”

Intel also wants to compete for wearable computing devices such as smart watches and fitness tracking products. Intel has collaborated with design company opening Ceremony to launch an intelligent bracelet that supports the functions of communication and wireless charging.

In March this year, Intel acquired the fitness ring maker Basis science and last week announced plans to work with fashion accessories retailer Fossil Group to develop more wearable computing equipment.

(Responsible editor: Lvguang)