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Intel to Chinese electronics company Xiaomi: Let’s make a deal

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Greg Mombert/Digital Trends
Intel is engaging in an intriguing business relationship with Chinese electronics manufacturer Xiaomi — if the latest rumors are to be believed, that is. Apparently, the deal gives Xiaomi a major incentive to use Intel processors as the company begins to expand its interests in the competitive laptop market.

Every Core i7 processor that Xiaomi purchases for use in a laptop will be accompanied by an Atom processor suitable for a tablet, which will be provided by Intel free of charge, according to a report in Digitimes. It’s easy to see why both companies would be keen to enter into such a relationship, given the benefits on the table.

Despite having limited name recognition in the United States, Xiaomi has quickly become a serious force in the electronics industry from its home base in China. On the country’s Singles’ Day holiday in November of last year, it managed a whopping $188 million in sales.

Smartphone sales have long been the backbone of the company’s business model, but chairman Lei Jun was unfazed when it fell short of its target in that area last year. Jun stated that Xiaomi’s expansion into other product lines would help make up for any lost profits.

This is where Intel apparently enters the scene, as the manufacturer’s supply of complimentary Atom processor will help cut costs while Xiaomi produces its MiPad tablets. Meanwhile, Intel could be in line to sell plenty of Core i7 processors if the company’s laptop interests enjoy the same success as its smartphone efforts.

Xiaomi laptops that feature an Intel Core i7 processor are already being put up for pre-order, according to a report from PC Perspective, so there’s already some evidence that the two companies are working together. However, news of the deal comes from an anonymous source, so this rumour is unconfirmed as of this writing.

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