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Apple, Microsoft and Intel to bid on 15 million unit tablet deal

post #1 of 64
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Apple, Microsoft and Intel are considering making a bid for a Turkish government project that would see the winning company build and supply of up to 15 million tablets, over four years, to school children.

Turkish Trade Minister Zafer Caglayan told Anatolia news agency that the three companies are actively engaged in pursuing a bid for this government-funded project, called Fatih (Turkish for conqueror), according to Bloomberg.

Caglayan revealed that negotiations with Apple officials took place during his visit to the U.S. and noted that Apple as part of the deal would considering manufacturing various iPad and iPhone peripherals in Turkey, such as earphones and covers.

Rival companies Microsoft and Intel are also interested in the Fatih project, with Microsoft confirmed to make a visit to Turkey to learn more about this governmental initiative and Intel said to consider opening a research and development center in Turkey.

Another Turkish government official, Industry Minister Nihat Ergun, said, on July 13, that the winning company will have to build the 15 million tablets in Turkey.

Apple is known for outsourcing smartphone, tablet and computer contracts to Asian-based corporations where long-time partners like Foxconn and Pegatron are usually awarded production orders for Apples mobile devices. Foxconn is currently producing iPad 2 tablets and the Chinese supplier is also expected to start iOS tablet manufacturing in Brazil next month.
post #2 of 64


AI had better follow up on this story once the winning bidder is announced.
turtles all the way up and turtles all the way down... infinite context means infinite possibility
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turtles all the way up and turtles all the way down... infinite context means infinite possibility
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post #3 of 64
TBH let's look at the Players:

Apple- 2 succesful Tablets with worldwide Recognition and full integration with ease of Use.

Intel- The Meego Platform, which is a very nice OS and not hard to navigate around. The Problem? Intel can't build a tablet to save their lives. At least not using 3rd party OS's.

MS: Has yet to push their Tablet OS out and has no guarantees that what we see is what we are getting OR how much they will cost.

The safest bet would and most friendly would be Apple.

The most dangerous would be Intel, and MS acts as a nice buffer in between.
post #4 of 64
Apple has a product to ship today... if they had to. iPads are already being used in schools.

What sort of Intel/Microsoft tablet are they talking about? Meego or Windows 8 ?
post #5 of 64
They're schoolchildren. Schoolchildren. And immediately we've got huge corporations fighting to "snatch them up."
Shouldn't the government evaluate what the best tablet choice is rather than just going with the highest bidder?
post #6 of 64
Last I checked, Microsoft and Intel don't even make their own tablets.
post #7 of 64
Is it even possible for Apple to build the tablets in Turkey? I mean, I know it's possible, but why go through all the effort?
post #8 of 64
Quote:
Originally Posted by AppleInsider View Post

Apple, Microsoft and Intel are considering making a bid for a Turkish government project that would see the winning company build and supply of up to 15 million tablets, over four years, to school children.

Turkish Trade Minister Zafer Caglayan told Anatolia news agency that the three companies are actively engaged in pursuing a bid for this government-funded project, called Fatih (Turkish for conqueror), according to Bloomberg.

Caglayan revealed that negotiations with Apple officials took place during his visit to the U.S. and noted that Apple as part of the deal would considering manufacturing various iPad and iPhone peripherals in Turkey, such as earphones and covers.

Rival companies Microsoft and Intel are also interested in the Fatih project, with Microsoft confirmed to make a visit to Turkey to learn more about this governmental initiative and Intel said to consider opening a research and development center in Turkey.

Another Turkish government official, Industry Minister Nihat Ergun, said, on July 13, that the winning company will have to build the 15 million tablets in Turkey.

Apple is known for outsourcing smartphone, tablet and computer contracts to Asian-based corporations where long-time partners like Foxconn and Pegatron are usually awarded production orders for Apples mobile devices. Foxconn is currently producing iPad 2 tablets and the Chinese supplier is also expected to start iOS tablet manufacturing in Brazil next month.

This sounds insane to me. Like that stupid OLPC thing that ultimately did nothing.

Turkey is one of the poorest countries on earth despite being part of the European Union. They'd be better off spending the money shoring up education and human rights (and women's rights and gay rights), than wasting money on tablets for kids that don't have enough to eat.
post #9 of 64
Oh my god, Im ROTFL! MSFT & Intel??? Why not just buy all of the leftover Touchpads at a discount?
post #10 of 64
The iPad would be the best fit IMHO!
MS would just wear down the tablet with its virus prone crap. And intel...I hear crickets.
post #11 of 64
Quote:
Originally Posted by soggybacon View Post

They're schoolchildren. Schoolchildren. And immediately we've got huge corporations fighting to "snatch them up."
Shouldn't the government evaluate what the best tablet choice is rather than just going with the highest bidder?

Welcome to the real world
post #12 of 64
Never gonna happen.

Apple isn't going to build a factory in Turkey. They'll be lucky to get an Apple store.

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Life is too short to drink bad coffee.

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post #13 of 64
Quote:
Originally Posted by Prof. Peabody View Post

This sounds insane to me. Like that stupid OLPC thing that ultimately did nothing.

Turkey is one of the poorest countries on earth despite being part of the European Union. They'd be better off spending the money shoring up education and human rights (and women's rights and gay rights), than wasting money on tablets for kids that don't have enough to eat.

LOL. I agree with your conclusion, but it's based on wrong facts. Turkey isn't one of the poorest countries in the world, and it isn't part of the EU.

https://www.cia.gov/library/publicat...k/geos/tu.html
post #14 of 64
Quote:
Originally Posted by Prof. Peabody View Post

This sounds insane to me. Like that stupid OLPC thing that ultimately did nothing.

Turkey is one of the poorest countries on earth despite being part of the European Union. They'd be better off spending the money shoring up education and human rights (and women's rights and gay rights), than wasting money on tablets for kids that don't have enough to eat.

No, Turkey is not part of European Union (you could ask Greece why, short answer Cyprus), but part of Turkey is in Europe.
post #15 of 64
I hope that Apple loses the bid. It doesn't sound like a good deal and with that amount of tablets, they can't be making that much profit. It sounds like Turkey wants whichever company who wins to bend over backwards and commit to ridiculous comprises. When I think of hi-tech, Turkey doesn't immediately pop into my mind. Apple doesn't need this deal. They should concentrate on their real customers with money to spend.
post #16 of 64
I think HP should put in a bid. I understand they have some unsold tablets gathering dust.
post #17 of 64
Quote:
Originally Posted by soggybacon View Post

They're schoolchildren. Schoolchildren. And immediately we've got huge corporations fighting to "snatch them up."
Shouldn't the government evaluate what the best tablet choice is rather than just going with the highest bidder?

"Lowest bidder", not highest.

Could be a nice extra bit of business for Apple, but I'd want to get paid up front.

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GOA

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Proud AAPL stock owner.

 

GOA

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post #18 of 64
Sounds like Microsoft wants to ink a tablet deal with Turkey even though they don't have one, similar to the way they inked the DOS deal with IBM in 1980 even though they didn't have an operating system.

Please update the AppleInsider app to function in landscape mode.

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Please update the AppleInsider app to function in landscape mode.

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post #19 of 64
I don't think this is something that Apple, MS, or Intel particularly needs. If Turkey asks for a bid, why not put one in and see what happens. But its not something that will make or break either company.
post #20 of 64
Quote:
Originally Posted by Prof. Peabody View Post

This sounds insane to me. Like that stupid OLPC thing that ultimately did nothing.

Turkey is one of the poorest countries on earth despite being part of the European Union. They'd be better off spending the money shoring up education and human rights (and women's rights and gay rights), than wasting money on tablets for kids that don't have enough to eat.

Well, considering that the CIA Factbook ranks Turkey #94 in GDP per capita, and they list 227 total countries, I'd say "one of the poorest countries on Earth" is stretching it a bit.

But obviously, if they could get a major manufacturing deal like 15m iPads, that would go a long way toward improving the lives of many Turks.
post #21 of 64
Quote:
Originally Posted by Apple ][ View Post

I hope that Apple loses the bid. It doesn't sound like a good deal and with that amount of tablets, they can't be making that much profit. It sounds like Turkey wants whichever company who wins to bend over backwards and commit to ridiculous comprises. When I think of hi-tech, Turkey doesn't immediately pop into my mind. Apple doesn't need this deal. They should concentrate on their real customers with money to spend.

CNN International often runs commercials for how tech and business friendly Turkey is

They do the same for Macedonia and Kazakhstan as well, which are equally ridiculous.
post #22 of 64
Quote:
Originally Posted by ort View Post

Is it even possible for Apple to build the tablets in Turkey? I mean, I know it's possible, but why go through all the effort?

Good question. It probably wouldn't be worth the trouble for Apple.

All it would do is result in us seeing more headlines to the effect of "France: I want 15 million iPads.... but made in France," "India: I want 15 million iPads... but made in India," and so forth.

If the Turkish government is truly interested in its schoolchildren's welfare, it would be finding the least expensive + most effective tablet it can. And, at this point and by a long shot, there's only one.

Apple should (and probably will) tell them to take a hike.
post #23 of 64
A low-rate production facility (say 500k per month) might make sense for Apple/Foxcon. It wouldn't be full production, but at least final assembly or something. It might employ 1,000 people at $1,500/month each.
post #24 of 64
Quote:
Originally Posted by TalkingNewMedia View Post

I think HP should put in a bid. I understand they have some unsold tablets gathering dust.

Hasn't every iPad clone maker?
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post #25 of 64
Quote:
Originally Posted by aaarrrgggh View Post

A low-rate production facility (say 500k per month) might make sense for Apple/Foxcon. It wouldn't be full production, but at least final assembly or something. It might employ 1,000 people at $1,500/month each.

Too much. They only pay $150-$250 USD a month
post #26 of 64
Quote:
Originally Posted by Prof. Peabody View Post

This sounds insane to me. Like that stupid OLPC thing that ultimately did nothing.

Turkey is one of the poorest countries on earth despite being part of the European Union. They'd be better off spending the money shoring up education and human rights (and women's rights and gay rights), than wasting money on tablets for kids that don't have enough to eat.

Wow, such ignorance -- the Prof. bit in your name is just for a good laugh, yeah?

Turkey is not part of the European Union, though it is part of NATO. And Turkish women do have rights -- check out their university numbers and employment stats.

Economy wise, even Wikipedia knows better than you:

Quote:
Turkey has the world's 15th largest GDP-PPP and 17th largest Nominal GDP. The country is a founding member of the OECD (1961) and one of the G-20 major economies (1999). Since December 31, 1995, Turkey is also a part of the EU Customs Union. Mean graduate pay was $10.02 per manhour in 2010.

The CIA classifies Turkey as a developed country. Turkey is often classified as a newly industrialized country by economists and political scientists; while Merrill Lynch, the World Bank and The Economist magazine describe Turkey as an emerging market economy.

The World Bank classifies Turkey as an upper-middle income country in terms of the country's per capita GDP in 2007. According to a survey by Forbes magazine, Istanbul, Turkey's financial capital, had a total of 28 billionaires as of March 2010 (down from 35 in 2008), ranking 4th in the world behind Moscow (50 billionaires), New York City (60 billionaires) and London (32 billionaires).

There are some typical responses here, some possibly verging on xenophobia. What is so wrong with Turkey wanting to give their school children tablets as an aid to education? If this was one of the US States, or the UK, people would be jumping for joy. Turkey is just another business opportunity for the major players mentioned.

And, if you're all so flipping fired-up about human rights issues, how about giving up every thing you own that says "Made in China" -- you'd probably end up living in an empty house and your workplace would be sheer hell. And don't come out with the "we should manufacture goods in the USA" unless you're willing to pay $10K for a Mac and $5k for an iPad.
post #27 of 64
Quote:
Originally Posted by mstone View Post

Never gonna happen.

Apple isn't going to build a factory in Turkey. They'll be lucky to get an Apple store.

Why not? Apple's (and everyone else's) Asia-only manufacturing strategy is an IP disaster as Samsung has proved. They'll diversify assembly to Brazil and a poor European country to limit exposure to IP theft, carbon output & political leverage. Turkey makes sense & a big deal would compensate for startup costs.

While they're a it they should buy a fab for App processors & Flash production.

McD
Android proves (as Windows & VHS did before it) that if you want to control people, give us choices and the belief we're capable of making them. We're all 'living' the American dream.
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Android proves (as Windows & VHS did before it) that if you want to control people, give us choices and the belief we're capable of making them. We're all 'living' the American dream.
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post #28 of 64
Sort of a blackmail deal. You can have this, but we want this.
Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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post #29 of 64
Quote:
Originally Posted by AppleInsider View Post

Apple, Microsoft and Intel are considering making a bid for a Turkish government project that would see the winning company build and supply of up to 15 million tablets, over four years, to school children.

Another Turkish government official, Industry Minister Nihat Ergun, said, on July 13, that the winning company will have to build the 15 million tablets in Turkey.

It would be interesting if something like this inexpensive tablet could be considered:

"Sakshat Tablet" -- http://sakshattablet.org/
http://en.wikipedia.org/wiki/Sakshat
http://www.youtube.com/watch?v=ytIKIGRW7j0

Most will scoff at the Resistive Touchscreen and other limitations, but for the proposed $35 price I'd even buy one (if they were available to the general public).
It might be a workable tablet, since they're going to be for children, though they perhaps should note the age of children they'll be for.

Right now there are still some issues needing to be ironed out.

Too bad no hardware specs are available for the Sakshat Tablet, and no hardware requirements were noted for the Turkish tablet project.
post #30 of 64
MS inflicting more of their garbage on children?

Now . . . in tablet form.
post #31 of 64
Today is August 18. Perhaps the Turkish government official, Industry Minister Nihat Ergun, who said, on July 13, that the winner would have to build the tablets in his country has not evaluated the capabilities of the "competition". He could easily wind up with a non-Apple factory in his country that assembles a very poor tablet. I personally would not build a factory in Turkey for an order of 15 million tablets and I hope Tim Cook, et. al., see it the same way. They would have to buy a lot more iPads than 15 million and have a lot more resources available than money.
post #32 of 64
I thought I was immune to stupid comments but, "Turkey is one of the poorest countries in the world." and "Apple will never build a factory in Turkey." And those along similar lines. Implying that there is no manufacturing capacity in Turkey.

Just FYI - Turkey has a flourishing manufacturing sector that includes steel mills, ship building and heavy manufacturing.

This deal is modeled on Foreign Military Sales Off-Sets with which Turkey has broad experience. In fact Lockheed Martin manufactures F-16s in Turkey. [Just a little bit more complex than iPads.] a Lockheed executive told me that the Turkish line is the only zero-defect facility in Lockheed's experience.
post #33 of 64
Quote:
Originally Posted by Apple ][ View Post

I hope that Apple loses the bid. It doesn't sound like a good deal and with that amount of tablets, they can't be making that much profit. It sounds like Turkey wants whichever company who wins to bend over backwards and commit to ridiculous comprises. When I think of hi-tech, Turkey doesn't immediately pop into my mind. Apple doesn't need this deal. They should concentrate on their real customers with money to spend.

Wow. That's a lot of mistakes in one short post.

- Not much profit? Well, if the other companies can even break even, Apple can make a reasonable profit. Have you noticed that all the other tablets on the market are similar price to Apple's but inferior products (cheaper screen, smaller screen, less storage, etc). In the iPad and MBA lines, Apple has the most cost-competitive manufacturing

- Turkey doesn't have high tech? Actually, it does, but it's irrelevant. We're not talking about making microprocessors or space shuttles here, we're talking about assembly - which Turkey could easily handle.

- Apple doesn't need this deal? Actually, they do need it - every bit as much as anyone else. If someone else gets it, they're suddenly right up there with Apple in sales - which gives them a huge amount of leverage.

- Company must bend over backwards? I don't see anything like that in the request. They want someone to sell them 15 M tablets and maybe assemble them in Turkey. Not at all unreasonable, and manufacturing in Turkey is very competitive.
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"I'm way over my head when it comes to technical issues like this"
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post #34 of 64
Quote:
Originally Posted by TalkingNewMedia View Post

I think HP should put in a bid. I understand they have some unsold tablets gathering dust.

Quite so. Turkey could get them for pennies on the dollar, without all this BS they're trying to pull. They'd even get immediate delivery. Problem solved.

But that would make sense, so it'll never happen.
post #35 of 64
Quote:
Originally Posted by Apple ][ View Post

I hope that Apple loses the bid. It doesn't sound like a good deal and with that amount of tablets, they can't be making that much profit. It sounds like Turkey wants whichever company who wins to bend over backwards and commit to ridiculous comprises. When I think of hi-tech, Turkey doesn't immediately pop into my mind. Apple doesn't need this deal. They should concentrate on their real customers with money to spend.

Bingo. Apple may bid, but they ain't gonna shed a tear if they don't win. This deal probably isn't even on Steve Job's primary radar, to be honest.

As for manufacturing iPads in Turkey, that is never going to happen in the next five years. Let's be realistic.
post #36 of 64
Quote:
Originally Posted by atsysusa View Post

I thought I was immune to stupid comments but, "Turkey is one of the poorest countries in the world." and "Apple will never build a factory in Turkey." And those along similar lines. Implying that there is no manufacturing capacity in Turkey.

Just FYI - Turkey has a flourishing manufacturing sector that includes steel mills, ship building and heavy manufacturing.

This deal is modeled on Foreign Military Sales Off-Sets with which Turkey has broad experience. In fact Lockheed Martin manufactures F-16s in Turkey. [Just a little bit more complex than iPads.] a Lockheed executive told me that the Turkish line is the only zero-defect facility in Lockheed's experience.

We're talking consumer electronics here. At a scale and quality of Apple iPads.
post #37 of 64
They should look at the BBC Micro
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post #38 of 64
Quote:
Originally Posted by smartin684 View Post

Oh my god, Im ROTFL! MSFT & Intel??? Why not just buy all of the leftover Touchpads at a discount?

Perfect. Hp might even pay the shipping.
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post #39 of 64
Quote:
Originally Posted by atsysusa View Post

...a Lockheed executive told me that the Turkish line is the only zero-defect facility in Lockheed's experience.

Cool!
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post #40 of 64
Hence them wanting the product built in Turkey. This offer is really about two things. First, bringing jobs to the Country by promising to purchase 15 million units of the product. This is to provide incentive for a manufacturer to open a factory in Turkey that would build even more product after the government's purchase. Not sure that is going to work, but from Turkey's perspective it is worth trying. Second, as a side effect the offer is about giving children an important learning tool.

Quote:
Originally Posted by Prof. Peabody View Post

This sounds insane to me. Like that stupid OLPC thing that ultimately did nothing.

Turkey is one of the poorest countries on earth despite being part of the European Union. They'd be better off spending the money shoring up education and human rights (and women's rights and gay rights), than wasting money on tablets for kids that don't have enough to eat.
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