Intel considering to stop mobile subsidies

Intel has been selling its mobile chips at a loss for quite some time to gain marketshare in the tablet/phone market but now there's speculation that the chip giant may stop providing subsidies to eliminate losses from the division. Instead, Intel is expected to offer support through different methods. The new cooperation will likely focus on larger clients, like ASUS, and will no longer include Chinese white-box players.

The sources believe that Intel is mainly stopping its subsidies to China's white-box players as its cooperation with Tsinghua Unigroup should no longer require the CPU giant to promote its products in China.

Spreadtrum Communications, a CPU subsidiary of Tsinghua, will develop x86-based SoCs jointly with Intel and will also be responsible for selling the CPUs in China. With Spreadtrum's existing channels and clients, Intel will not need to offer subsidies to attract partners in China.

Since orders from first-tier brand vendors are still handled by Intel, the sources believe that the CPU maker is unlikely to risk losing high-volume orders from these clients.

Source: DigiTimes