In order to get its Atom chips into around 40 million tablets, Intel Corporation is paying tablet manufacturers to use its chips in manufacturization of the tablet. As part of their goal in the year 2014 to increase the number of tablets embedded with Intel products inside, this cash rich company has decided to pay tablet manufacturers.
Intel has a clear goal in mind to increase the product usage more than triple compare to its last year data. In order to achieve its ambitious goal, Intel started moving its steps by buying a piece of the tablet market which will result in lot more tablets with Intel inside. Till now they were tailoring their products depends on what tablets demand.
The corporation disclosed at its financial analyst meeting that Intel will pay makers for the additional components costs of using embedding its Bay Trail Chips instead of present ARM based processors. It seems that Intel is making an investment to get into the market slowly. CEO Mr. Brian Krzanich shed a bit more light when asked about this Intel based tablets, he said that the majority of projects that they have in this year use some level of contra revenue.
Intel Corporation has become aggressive as the PC sales are down and chip makers are not getting success in personal computing as many tablets are using ARM chips. According to analysts, Intel’s Bay Trail Chips are better and good performers. They doesn’t have integrated functionality that they should have to be on a tablet, so there will be need to add extra components for these chips which may create extra bill for the manufacturers.
Intel has decided to pay this extra revenue for the makers cover those bills. Mr. Krzanich added that this payment is not a price reduction but it is an extra cost equalizer. The corporation hopes that this chip introduction will seed the market until next year when updated Intel chips Broxton and SoFIA appear, and no longer require extra payment.
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