wIntel Decides to Keep Tablet Subsidies

You know Wintel is feeling the pressure when they cut prices. They really hate to do that so they call those adaptations “subsidies” or “promotions” or what not…“Although the strategy helps Intel to maintain a share of around 90% in the notebook market, the strategy has taken a heavy toll out of Intel in the mobile device market as the company has generated about US$7 billion of losses from its mobile and communications business during the past two years and will continue to see losses in the fourth quarter, the sources noted.
Internally, Intel has been debating about whether to stay in the tablet market, but the company has decided to push for the market since its absence could impact its PC business and create a hole in its Internet of thing (IoT) lineup, the sources explained.”
but they are effectively price-cuts to the market. Folks see the prices are lower and buy/sell more units. It’s pretty serious if Intel is willing to take a huge loss just to defend the desktop monopoly on its deathbed, but this is what I predicted years ago. So, I was off a few years. Sue me… The dying dinosaur will thresh mightily for more time alive.
See Intel decides to keep tablet subsidies, say sources.

About Robert Pogson

I am a retired teacher in Canada. I taught in the subject areas where I have worked for almost forty years: maths, physics, chemistry and computers. I love hunting, fishing, picking berries and mushrooms, too.
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4 Responses to wIntel Decides to Keep Tablet Subsidies

  1. ram says:

    You are aware, of course, that Intel offers a full range of compilers and code optimization tools for Linux. One can just as easily (as compiling with gcc) compile with Intel tools and get Intel/Linux instead of GNU/Linux. That is pretty close to an Intel operating system 😉 Similarly for Android/Linux platforms.

    Be careful what you wish for, you just might get it!

  2. ram wrote, “you shouldn’t go around saying “Wintel””.

    M$ and Intel were hand in hand for decades creating, supporting and profiting from monopoly at the expense of the world. So, it’s Wintel until Intel gets its own OS which they were attempting way back when or M$ starts making CPUs which will never happen.

  3. ram says:

    The article says nothing, absolutely nothing, about Microsoft, so you shouldn’t go around saying “Wintel”. Intel is hammering Microsoft with its NUC boxen and its Xeon Phi (Atom cluster) boards, both which are designed for Linux. Plus Intel’s developement of its completely open source graphics drivers.

    The reason Intel is “subsidizing” tablets was explained at an Intel developer conference last year. The more tablets sold at low margins the more servers sold at high margins.
    Intel also makes the processor support chips, and in fact, makes more money off of those than the processors themselves. They have positioned themselves pretty much in a win-win situation.

  4. wolfgang says:

    I dunno. intel is still making scads of money. see yahoo at http://finance.yahoo.com/q/is?s=INTC

    hard to argue with man when still getting rich.

    intel stock paying 2.6% dividend, too, better than bank.

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