Published in PC Hardware

Intel reportedly subsidizing SoFIA 3G chips

by on23 May 2015


Honestly, who didn’t see this coming?

Intel is said to be offering a subsidy for every single SoFIA-based device churned out by Chinese white-box outfit. 

The company officially announced the first batch of three SoFIA processors in April, pitting them against MediaTek, Allwiner, Amlogic and Spreadtrum solutions, potentially even against some Qualcomm parts. 

It quickly emerged that Intel is also helping hardware makers release SoFIA-based tablets, with prices starting at $79

Now it seems the chipmaker is offering a generous subsidy for each SoFIA product shipped.

$3 sometimes goes a long way

The subsidy in question, reported by Digitimes, amounts to $3, which might not sound like much. However, entry level tablet chips with four Cortex-A53 cores cost as little as $5

Intel is also planning to bump up the subsidy in accordance with purchasing volumes. In other words, instead of buying an Allwinner chip for $5, vendors will be able to get an Intel chip for a fraction of the cost (or even free of charge in some situations).

Of course, the SoC is not the only component you need to put together a tablet or smartphone, but with entry-level tablet production costs estimated of less than $40, every penny counts – and $3+ is a big deal.

SoFIA reference tablet platforms

What is somewhat surprising is that Intel’s efforts appear to be focused on tablets. SoFIA 3G parts are capable of powering entry-level phones, but the first SoFIA devices hitting the market are cheap tablets rather than phones.

Rockchip is working with Intel to promote one such reference platform – a 7-inch 1024x600 tablet with Android 5.1, C3230RK processor, 8GB of storage and a 2,300mAh battery. If you choose to get a lot of 1,000-5,000 units, the price for such a tablet is about $45.

We already had a chance to see one SoFIA tablet, which is basically an oversized phone with a C3130 processor, priced at $69. 

Where are Intel SoFIA phones?

So why aren’t there any SoFIA phones yet? Well, Intel and Rockchip already have a significant presence in the Chinese tablet industry, so it’s understandable that they would roll out the first products in a market segment they are familiar with. However, this does not mean we will not see SoFIA phones soon.

If Intel decides to subsidize smartphone processors, especially the 4G-enabled Atom x3-C3440, it should have no trouble securing design wins. Commoditised Android phones are big in China, India, and other emerging markets. Marketing $50 or $100 phones with 3G and 4G connectivity respectively should not be a problem, especially not with an “Intel Inside” sticker on the back.

The big question is how Intel plans to sweeten the deal. If a 3G tablet with a quad-core SoFIA C3230RK 3G processor costs as little as $45, a phone based on the same platform should cost just as much, or less if vendors choose to use cheap 4- to 4.5-inch WVGA panels. The C3440 with 4G could easily go after more serious designs in the $50-$100 range, with 720p displays and a few more goodies.

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