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AMD steers clear of low-cost tablet market

Agam Shah | April 21, 2014
Advanced Micro Devices doesn't want its chips in low-priced tablets, and is eager to avoid a battle with Intel or ARM, whose chips have driven tablet prices down to under US$100.

Intel also has its own factories and can afford to subsidize chips. AMD gets its chips made from contract chip manufacturers like GlobalFoundries.

Intel is looking to ship 40 million tablet chips this year, and this week reported it had shipped 5 million tablet chips in the first fiscal quarter. The tablet market is currently favorable to ARM, so Intel has to provide subsidies and incentives to device makers in an effort to establish x86 chips.

And just like in PCs, AMD could simply piggyback Intel's success and make its way into the x86-friendly tablet market.

"It isn't the first time that's happened," Brookwood said. "But I don't think they want to do that."

 

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