No. $5 is a big deal when you're talking about $250 tablets with razor thin margins to begin with
I am not disagreeing. To add further to the point, also remember a tablet may sell for $250 to the final customer but that is after a middle man such as a store is involved. Those middle man vendors are going to want at least 10% so that tablet may be sold by dell or hp may be sold to the amazons, best buys, wal-marts of the world for $225 of $200 (if the product is not selling and thus the OEMs want to curry favor with the middle man to push product X by offering product X with a higher profit margin.).
The ipad mini 2012 teardown in Nov 2012 was about $188 of BOM cost and about $10 of manufacturing cost.
http://www.isuppli.com/Teardowns/Ne...l-of-Materials-Teardown-Analysis-Reveals.aspx
Most high end tablets with nice screens are going to have a BOM in the $150 to $200 range
Now this is the BOM cost, not the cost for any research and design, warranty, tech support, marketing or software development. With a Windows Table the OEMS are going to be for the most part paying for software development by buying a windows license which itself may be $30. This $30 even if it includes office home and student reduces the profitability for the OEMs.
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In other words the gain or loss of $5 to the BoM is going to be a significant swing in the profitability of the device. Furthermore OEMs can offer the faster chip as a $30 or $50 dollar
online order add on where they OEMs will be able to recoup this as a very high profit similar to how they recoup higher nand sizes as high profit.
It is intels best interest to offer two skus for tablets, for by offering a mainstream and a high end sku they can curry favor with the oems. Currying favors with the oems means more design wins.
Just like how apple didn't care if you got an ipad or a mini, just as long as its an apple, intel doesn't care if you get a 3740 or a 3770 just as long as it is an intel and not a qualcomm, a tegra, a samsung, or a rockchip.