4 ms·

"its costly tablet chip strategy paid off" ... > "the company's mobile and communications group's second-quarter revenue fell 83 percent to $51 million, and th

"its costly tablet chip strategy paid off" ... > "the company's mobile and communications group's second-quarter revenue fell 83 percent to $51 million, and the unit had an operating loss of $1.12 billion"

hfern 12y ago
He is saying it payed off in terms of market share, not income.
- davidw 12y ago
  Ah, so the old dot com strategy: we'll lose money on each one, but make up for it in volume!
  - seanflyon 12y ago
    It worked for Amazon
adventured 12y ago
Revenue fell because they're paying for market share. "Krzanich set a goal for Intel's chips to be used in 40 million tablets in 2014, up from 10 million the previous year." They're pretty clear in the article that by "paid off" they're referring to the market share they're buying. Intel is attempting to force its way into the market, leveraging its wildly profitable traditional processor division and $17 billion in cash. With $10.2b in net income the last four quarters, it makes perfect sense to vaporize a few billion dollars if necessary to grab a piece of the mobile market and build forward.
PhantomGremlin 12y ago
Bingo. That's the money quote. If you hadn't posted it first, I was going to. They're spending/subsidizing nearly $22 for each $1 of revenue. Intel is taking lessons from Microsoft in how to waste billions of dollars in futile endeavors.
- fpgeek 12y ago
  It's not necessarily futile. If Intel can grab enough of a slice of the Android tablet market that developers of Android apps that use significant native code start caring about x86 Android... all sorts of opportunities open up for them.