Here's why the margin and price myth will be busted
Here's alexander#$%$ commentary:
We will find out more on Monday at 1pm PT @ CES2013 Intel event.
I think the event will be webcast. It was last year. That is one reason for flurry of bashing during the last couple days. The AnandTech article was eye-opening for many.
"They can't compete on pricing with x86 vs ARM. I'm in the business, I know."
If you are in the business then you know that your statement is not exactly accurate. Intel can compete on pricing. They chose to compete on value. There goal is to pile up the transistors on the chip and to create value for the customers. They will do that by putting more on the single chip, tightly control power, performance and then set pricing based on value.
"If they were strictly making chips, ..."
When the CPU, SoC or ... is in the final machine on the retailer's shelf, each CPU in that sysem has undergone ALL the same phases. People just confuse who the competitors are and fail to consider all the costs. They assign the cost of the ARM CPU out the foundry as the "cost of the CPU". There is additional engineering overhead that is part of that CPU beyond what the foundary charges. Intel customers will not have to staff those engineers (like QCOM, NVDA, ...) and can use the off the shelf parts. You have to be careful when assigning cost and price pressures.
"However, coupling the own design R&D expenses with own production, and their cost is higher. Products might be better, but cost is higher."
The Intel cost may or may not be higher. You do not know the Intel cost, nor do I suspect that you know the actual other company costs. Even if you are "part of the business" you can only estimate these things.
"You may think performance is important, but in reality it defines 1% of the decision of 1% of the market...."
1% of 1% is your guess. Right?
My guess on decision elements .... not in any particular order except #1:
1. vendor (is it an Apple, Samsung, ....) of product that can basically do the job.
2. price ("cost" to them but not the "cost" to build the device) ... most won't buy if they can't afford (except maybe the guys)
3. is the product in front of me available. They won't buy a product that is not available 8-) and many won't wait for the back order to be filled
4. battery life ... makes a difference if say 50% different
The reason that AMD is performing so poorly is that they misfired on several product designs. Big time.