Intel And China Subsidies, Again

Earlier: Weird Weibo Rumor About Intel

Yesterday: After losing Apple’s iPad business, Intel has bled $7 billion while heavily subsidizing cheap x86 Atom Android tablets

It’s written by Daniel Eran Dilger, a Apple adherent.

And there’s no quote from Intel itself in there.

It’s Morgan Stanley analyst Joseph Moore, not Intel, who says:

“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,” Moore wrote. “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.”

But no one passing this piece around seems to be able to comprehend or parse what they’ve read.

There’s been absolutely no word from Intel itself that China subsidies will end in 2015.

If it’s true Intel has bled seven billion dollars in this quest, will they cut and run or double-down?

Maybe Intel should have focused more on how China tablet makers treat their customers before sinking money into them.

Personally, I’d really like to know what the sales figures are for China tablets — of any CPU. Xiaomi sold about twenty-thousand of the MiPad during 11/11, making it the top seller over all others. That’s just not an impressive figure. How much worse are other tablet makers doing?


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7 responses to “Intel And China Subsidies, Again

  1. Ric Day

    Xiaomi’s problem is pretty typical for domestic makers in the early stages of a new market, and is enhanced by the power of the Apple brand. Chinese consumers want to be seen with “famous brand” products and will buy an Apple product, or a flat-out knockoff, label and all, before a Xiaomi or similar brand. There just isn’t status in a Xiaomi product, yet.

    If the consumer really can’t afford an Apple product, odds are she will turn to Samsung, or another non-domestic brand.

    So Xiaomi has a struggle to get attention and (volume) sales.

  2. E.T.

    There’s a new European Intel tablet on the way: Nokia announced the N1, a 3:4 7.9″ intel-based tablet that will cost $250 (

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