Yeah, that's why Samsung uses Qualcomm's chips on a massive scale in its smartphones and just inked a deal to use millions of Broadcom chips.
Vertical integration is only good if you can do it better. Google probably can't do better server chips than Intel.
Their hands are tied behind their backs so even if they knew it was BS, they couldn't come out and say it.
But I don't work for Intel nor am I affiliated with Intel, so I can call Bloomberg out as I please.
Watch out...according to Bloomberg, GOOG will be making SSDs at half of Intel's price but with twice the margins.
Really. My anonymous source told me.
I will make the VERY rare exception and post one of my articles here.
The rebuttal to Bloomberg's "rumor"
Intel PR won't do anything because their hands are tied behind their backs. But, despite the fact that many of you routinely criticize me for being so public/vocal, this is a situation when I can be useful. I can't save the share price from these lies and half-truths, but I sure as hell can help keep my followers/readers from hitting the panic button just yet.
Go to Google's job site and tell me how many job openings there are for SoC designers, hardware validation engineers, DSP engineers, and so on?
That'll tell you everything you need to know. Now, excuse me, I've got some writing to do.
Yes. Bloomberg - or the anonymous "tipster" who started this #$%$ rumor - is complete #$%$ for putting this into print.
This is complete nonsense. Intel is more than happy to do custom chips for GOOG - literally no need for GOOG to do its own only to have it built on an inferior process and built by far less experienced teams.
This is 100% a hackjob. This is an example of manipulation by some sleazy fund.
Is Intel shipping LTE for handsets or just that XMM 7160 built on TSMC's 40nm process that's only finding its way into a few tablets? ;-)
Yessir. If you can have the best designs AND manufacturing, then you will be a real winner. Intel has the potential to make some serious coin off of mobile. It just needs to execute.
If Intel built chips for QCOM, its design teams would be firewalled off from Intel's design teams. Taking QCOM foundry business would mean that QCOM's chips would take away any value added advantage from Intel's parts. Foundry is low margin business and there is risk of fabless guys switching foundry partners at any time.
Intel needs to leverage its process to do better designs. If it can't do that, Intel's fate in consumer markets is sealed and the shares will be repriced.
QCOM's silver bullet is that it makes a ton from patents/IP. QCOM's chip business brings in profits of about $3-4B per year. It's not chump change, but if Intel were QCOM's fab it'd be maybe $1B-$2B in incremental profits.
That's enough to offset maybe a 10% decline in PCs at best. Intel cannot survive building phone/tablet chips at foundry margins.