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Intel Corporation Message Board

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  • bacbacker bacbacker Jan 8, 2013 8:03 PM Flag

    Here's why the margin and price myth will be busted

    Here's an entirely different take on margins from Luke Tomasello in comments section:

    "I understand the reduced margins, but I'm not sure I understand how this is bad considering these sales will be in addition to their other products, i.e., their not cannibalizing other sales.

    Example: Apple may have cannibalized some of it's own iPad margins by introducing the lower margin iPad Mini.. But Intel selling smartphone chips (at less margin) is not taking business away from any other Intel division.

    So how is adding lower margin sales a bad thing when they are in addition to all other sales?"

    [Makes sense; all the phones and tablets sold with Intel inside are like icing on the cake for Intel. Unless of course you are dumb enough to really believe that smartphones and tablets are cannibalizing the PCs]

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