Samsung Electronics has chosen an Intel Corp processor to power a new version of one of its top-tier Android tablets, a source with knowledge of the plans told Reuters, in a major victory for the U.S. chipmaker, which is struggling to find its footing in the mobile market.
While it seems an odd decision, the not-always-reliable Korea Times makes reference to possible yield issues with Samsung’s own ARM-based Exynos chips.
“Samsung wants to secure as many processors as possible at better pricing. That’s why Samsung Electronics has recently been diversifying its procurement channel in processor chips as a strategy to stabilize production yields of its in-house Exynos-branded processors,” he added.
Intel is keen to establish a decent foothold in the mobile market as the market shifts away from its traditional stronghold in desktop and laptop PCs to tablets, phablets and phones, and may well be offering Samsung a loss-leader deal to help it achieve this.