When it comes to mobile devices like smartphones and tablets, ARM’s architecture is widely used by the likes of Qualcomm, Apple, Samsung, NVIDIA, and so on. Intel has tried to get a foot in the door although Intel-based mobile devices aren’t as widespread as they would like them to be.
In fact Intel has reportedly offered OEMs subsidies to persuade tablet manufacturers to use their products, and have even offered to reimburse them any costs they might incur during the redesign of the motherboard to help accommodate Intel’s chips. While that method might have worked, it is costing Intel a pretty penny and according to Morgan Stanley analyst Joseph Moore, Intel will stop footing the bill.
According to Bernstein Research analyst Stacy Rasgon, it has been estimated that Intel subsidizes as much as $51 per tablet, which is a lot of money considering that some of these low-end Intel Android tablets can be bought for as little as $199. The company has reportedly lost $3 billion on mobile chips in 2013 and is expected to lose another $4 billion this year.
This would amount to $7 billion lost and it’s something Intel will no longer be standing for. Moore writes, “While we do expect that [Intel] phasing out tablet subsidies over the course of 2015 will cause modest reduction in losses, it could also blunt the company’s momentum in tablets significantly. Eliminating these losses would require either massive revenue gains, or massive expense cuts, and we don’t see a clear scenario for either of them.”
As to what this this could mean for consumers, well if you were hoping for cheaper Intel Android tablets, that might no longer be possible. Of course it is possible that other chipmakers could step in to fill the void but if you’re a fan of Intel, tough luck.