Intel is paying tablet manufacturers to use its chips

by
in hardware on (#3RV)
story imageHave you seen ASUS's new $150 x86 tablet and thought to yourself: how can it possibly be so cheap?

Well here's your answer. It just may be because Intel is paying manufacturers to use its chips. That's bad news for Intel. Turns out, because Intel's Bay Trail Atom processors don't have as much functionality integrated onto the chip as the more common ARM SOCs (system on a chip), it creates a higher "bill of materials" for tablet makers. Cash-rich Intel is covering the difference in cost by simply reimbursing the manufacturers for the extra components needed. That might be a stop-gap measure to ensure Intel stays "in the game" where tablets manufacturers are concerned, but a long range strategy it is not.

In the meantime, this is a good time to scoop up a cheapo tablet!
Reply 4 comments

battery life? (Score: 3, Interesting)

by zafiro17@pipedot.org on 2014-07-26 00:58 (#2NE)

You might save money by buying a cheapo tablet subsidized by Intel, but what about the battery consumption? ARM chips last so much longer without a recharge. I doubt Intel can match that.

Re: battery life? (Score: 3, Informative)

by bryan@pipedot.org on 2014-07-26 01:31 (#2NG)

The battery life seems to be comparable to that of other contenders, too. Asus claims run times up to nine hours on a single charge, which matches my subjective impressions based on casual use.
iPad mini Retina: 9.8 hours, 23.8 Wh battery
Memo Pad ME176C: ~9 hours, 15 Wh battery

Mainly due to Intel's lithography advantage. Bay trail at 22 nm vs Apple A5 at 32 nm

Good Luck Intel (Score: 1, Interesting)

by Anonymous Coward on 2014-07-26 13:59 (#2NP)

With the profusion of cheap android tablets flooding the market (go ifive!) Intel's strategy here may well pan out for them.

Unless they do a Microsoft and completely cheese off their customer base with a rotten product.