Intel contra-revenue on chromebooks

[scottswigart]

Does anyone have any idea what Intel is spending on contra-revenue specifically to get their chips into chromebooks?

 

[mfenn]

Moved from General Hardware .

mfenn
General Hardware Moderator

 

[monstercameron]

Does anyone have any idea what Intel is spending on contra-revenue specifically to get their chips into chromebooks?

none.

 

[Vesku]

Most likely none. It's competing with Intel's own Haswell Celerons so just need to offer Bay Trail for less than that rather than give it away.

 

[Yuriman]

I have a Haswell Celeron in my Chromebook...

 

[ShintaiDK]

Zero.

 

[mrmt]

Does anyone have any idea what Intel is spending on contra-revenue specifically to get their chips into chromebooks?

What made you think that Intel is spending contra-revenue money on chromebooks?

 

[lefty2]

What made you think that Intel is spending contra-revenue money on chromebooks?

Probably, this:
http://techtainian.com/news/2014/6/...-and-its-going-to-stop-slower-devices-enroute

Fearing being locked out of Chrome OS market and broader PC market, Intel "priced Haswell Celeron at an extremely cut rate".

 

[mrmt]

Probably, this:
http://techtainian.com/news/2014/6/...-and-its-going-to-stop-slower-devices-enroute

It seems that the writer doesn't have a clue on what subsides mean.

 

[pw257008]

It seems that the writer doesn't have a clue on what subsides mean.

I think he's got a fine grasp on it. Intel subsidized Chromebook performance, in the form of lower than market Haswell prices, in order to get a foothold in the market, and they will no longer be providing that subsidy. Providing a subsidy wasn't necessarily their goal, but it was the end result.

 

[mrmt]

I think he's got a fine grasp on it. Intel subsidized Chromebook performance, in the form of lower than market Haswell prices, in order to get a foothold in the market, and they will no longer be providing that subsidy. Providing a subsidy wasn't necessarily their goal, but it was the end result.

Subsides =! Lower gross margins.

Subsidies implies that Intel wouldn't be able to sell at all on the chromebook market if selling making money. I don't think that's the case here.

 

[ninaholic37]

I've never seen an AMD Chromebook. What's up with that? Now that Intel is mostly switching from Haswell to Bay Trail, can AMD could shove in a few Mullins or Beema designs? Is it because of price or does Intel have an exclusive x86 contract with Google? Even ARM has a few models.

 

[lefty2]

I've never seen an AMD Chromebook. What's up with that? Now that Intel is mostly switching from Haswell to Bay Trail, can AMD could shove in a few Mullins or Beema designs? Is it because of price or does Intel have an exclusive x86 contract with Google? Even ARM has a few models.

I'm sure AMD would like to have some Chromebook market share, but don't have the resources to provide the drivers and support. Same reason that there's no x86 AMD android devices.

 

[NTMBK]

I'm sure AMD would like to have some Chromebook market share, but don't have the resources to provide the drivers and support. Same reason that there's no x86 AMD android devices.

Why push x86 in an ARM ecosystem, when they are ARM licensees? They're bringing out pin-compatible ARM and x86 SoCs next year, and the ARM one is explicitly targeted at Android.

 

[Roland00Address]

To my understanding all the Intel Chromebooks are intel celeron 2955u , intel core i3, or intel celeron version of atom n2830 and n2840. If it has a celeron or Pentium name it is PC computing group and no contra revenue. Has to have atom in the name to get contra revenue.

 

[Cerb]

I've never seen an AMD Chromebook. What's up with that?

Must be prices. Lenovo I know had one, but they're all Celerons, it looks like, now.

 

[VirtualLarry]

To my understanding all the Intel Chromebooks are intel celeron 2955u , intel core i3, or intel celeron version of atom n2830 and n2840. If it has a celeron or Pentium name it is PC computing group and no contra revenue. Has to have atom in the name to get contra revenue.

http://www.staples.com/StaplesProduc...&storeId=10001

Contra-revenue?

 

[Roland00Address]

http://www.staples.com/StaplesProduc...&storeId=10001

Contra-revenue?

To my understanding anything that has the word Atom in its name belongs to the The Mobile and Communications Group. Anything with Celeron or Pentium belongs to The PC Client Group.

Now just because something is Atom does not mean it gets contra revenue automatically. You still buy the atom chip at full price, after you buy it you go to a different intel area and ask for some of your money back saying I could have bought Mediatek or Qualcomm and this is their BOM and this is your BOM and I want you to make up the difference. Intel then gets to decide yes or no.

Think of it as a price match or a rebate fund. Just because you can convince someone at Best Buy to price match Newegg for a laptop does not mean Best Buy sell all those laptops at the Newegg price. It is on the case by case basis.

In effect it is negotiating with your cable company for better rates saying if you do not I will go to satellite. This type of tactic works when you have choice but when you only have 1, 2, or 3 options even if their is no "collusion" the provider of the service will not budge for he has all the negotiating power. In effect we are talking about monopolies, oligopolies, and monopsony (one buyer and multiple providers of the good) and competitive markets.

Now this is all to my understanding. I have not read all the intel financials cover to cover and listen to the financial calls come the end of the quarter. I do not have stock in intel so that would be a waste of my time, I am explaining what I have read in the tech press and this is all to my understanding.