Let's take Bernsteins comments today. They think margins will take a hit. Intel stock price is beat up partly because they say they haven't addressed this market.......so now they do.........and we are told Margins will take a hit. HOW DOES INTEL WIN HERE?
If Intel wins Apple foundry account, margins will compress. 8)
If Apple converts smartphone and/or tablet to Intel CPU, margins will compress. 8)
I think their calculations are also based on thinking that one Centeron will replace one Xeon so revenues disappear. Centeron will be sold in chassis that will be populated with many Centeron. The total revenue and margin dollars will be on par with Xeon boxes.