Intel Pulling The Plug On Android Tablet Subsidies In 2015


All good things must come to an end. For Intel, 2015 is going to be the year when it lets go of its ambitious plan to provide Android tablet makers with subsidies.

The idea was to increase shipments of slates powered by its chips to 40 million units — increase them to the tune of a wholesome quadrupling from the numbers posted in 2013. The plan kicked off early this year, but the chip giant is putting a lid on it.

And that is because Intel is losing massive amounts of money on this venture.

It is a highly competitive strategy, though.

Intel not only helps tablet makers build devices powered by the Bay Trail chips, but the company also offered to pay for extra component costs. All in a bid to provide a better alternative to competing chips from ARM, which are not only widespread but a popular choice for big companies.

Including names like Apple, Samsung, Qualcomm and NVIDIA.

Anyway, this turned out to be an expensive move. As reported here, Intel just cannot afford to maintain this growing hole in its budget. Joseph Moore, a Morgan Stanley analyst believes that Intel will put a stop to this plan soon.

Stacy Rasgon, an analyst with Bernstein Research revealed that Intel was subsidizing as much as $51 per tablet, and is expected to lose $4 billion by the time this year comes to an end.

So what does it mean for the Android ecosystem?

Well, no more subsidies means that those dirt cheap Android tablets may not be possible in 2015. Unless some other chip maker jumps in with a similar program.

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