This is a HUGE win for INTC.
Why? A $10 part made at TSMC. Intel would be lucky to recover development costs.
Would like to read the article unfortunately the link doesn't work.INTC obviously sees its future growth in the IOT.
Replace DOT with a dot, and the link should work. How can Intel possible compete in IoT as presented by Renduchintala (those 50 billion "things")?
'We are not exiting mobile, but we are broadening its definition to make it synonymous with the interconnectedness of the more than 50 billion “things.”'
From Murthy Renduchintala on the Intel website. Worth a read. Raises some more questions on Intel's actual strategy.
The objective was winning the IoT and connected devices market (originally the communications market).
Intel is well-positioned to grab the opportunities before it after spending years developing the technology and ecosystem.
So, is this what we are going to get from you going forward? This post was slated even by Intel longs...
How on earth is Intel going to compete in the "IoT and connected devices market" when it can't even deliver an integrated SoC?
BK, has communicated poorly, his version of "IoT" plays into the strengths of the competition, not to the strengths of Intel. If that is Intel's strategy, it'll fail.
Your comment was that Intel had never succeeded in competing with ARM. It was a ridiculous comment.
No...I said "Given Intel's history going up against these mobility companies..."
So, how is Intel going to compete in IoT and 5G? What is it going to do differently?
[Yeah, Intel has no history of success in competing with ARM companies in PCs, servers or data centers. This might be your stupidest comment ever.
ARM efforts to compete with Intel in PCs: Fail.
ARM efforts to compete with Intel in servers: Complete failure. ]
No, not stupid at all. If you are talking about Windows RT? I'de agree. As a side, is a MS device running continuum a PC in your eyes? Servers, too early to tell, the ARMy are still early in the cycle.
You are deflecting as always, we are talking about INTEL's growth drivers, why do you think Intel will succeed with IoT and 5g as presented by BK?
Intel has the growth drivers that the mobility companies don't.
The way BK presents these 'growth drivers' is *exactly* the area's the mobility companies are going for...Given Intel's history going up against these mobility companies...
So if cost is an issue, then $22 (or whatever the price right now is) is too much right?
Any cost is too much.
Lets play a game. Let's imagine that TSMC gave Apple the A9 for free. Apple saves 10% from it's Bill of Materials and passes that $22 saving onto the end customer. That $600+ phone family is now $22 cheaper. How many more phones would Apple sell?
The point I am making is that as a % of the BoM (or as a % of retail cost) the SoC isn't the main component.
If Apple wants to reduce the cost of it's BoM to significant reduce the retail price (while keeping it's margin intact) then the savings have to be found all over the place.
As a side, those Chinese firms also have a BoM getting close to Apple for their high end devices, the difference is they don't sell them for $600...
Is that why Hwawei and Xiaomi and others are producing their own chips? Hey they could still buy chips from TSMC for $22.
Hisilicon's chip's could be cheaper than $22... Apple's chips are much larger...
Cost is an issue, but other factors are involved, time to market, product differentiation, control etc.
No idea on what process Xiaomi's new SoC's is on, could be 28nm if they are targeting the really cheap stuff.
Its coming soon as Apples margins shrink.
That TSMC part, costs Apple $22 (according to IHS), less than 10% of the BoM for the 6s.
even though their 16nm yields are pathetic right now.
No one other than Apple is using TSMC 16nm. All that investment can't be wasted, so on to 10nm.. No one is asking how will TSMC recoup their investment in FinFETs.
Do you have a memory problem? You seem to post this every few weeks. Others are using TSMC 16nm (such as Hisilicon). Mediatech is going to be using TSMC's 10nm node (volume production, end of first-quarter 2017).
[Please provide stats to prove they are players in the modem business. ]
Are you serious? How do you think a Samsung, Mediatek or a Hisilicon powered smart phone connects to the network? Magic?
[You're an idiot. Only Qualcomm and Intel are players with these modems.
vasu322 to Ignore. ]
Nope. Samsung also has a standalone LTE modem. Others have their own LTE modems (such as Mediatek, Hisilicon), but they include them on the SoC.
Cherrytrail/Atoms tech is used in low end Celerons and pentiums. Don't worry.. Intel knows what its doing. You and Essa haven't a clue.
lol. Intel spent, what 20+ billion on 'mobility', It's laying of 12000 people, and repositioning itself, and yet you say Intel knows what it's doing? No questioning from a share holder eh? Just trust in management?
Explain Intel's IoT and 5G strategy, how and when it hopes to be competitive in those sectors?
They got their money's worth back with cherrytrail and now with the LTE modems in Apple. They need LTE for their IOT effort and technology expertise is never wasted.
Cherrytrail eh? How many units do you think Intel sold? How much of the $10 price to Apple do you think goes back to Intel once they have paid TSMC for that LTE modem? Will Intel make enough to cover the development cost of that part? What about the *billions* Intel has spent on these projects?
So, Intel need IoT effort. Why would that be? What is Intel's strategy to compete with "LTE enabled IoT SoCs"?
DumbEssa needs to get a job. He has zero knowledge of how the industry works.
Zero knowledge eh?
why not cancel things that won't sell? Seems like a good idea to me. You, or was it your shrill dual, Essa, have been jabbering about the failure of these products for years. Are you hosting us all for a champagne dinner tonight?
These are 'future' products (Sofia LTE and Broxton). If 'Essa' or anyone else could see that Intel would struggle with these parts (spec wise, sofia would have struggled even if on time) why did Intel spend millions (hundreds?) on the projects?
Given BK's talk of IoT and 5G as key points of Intel's strategy, how does this all sit with you?
ARMH moves up as Apple sells off. Does anyone on Wall Street know they are related?
After all the years of your ARMH talk, you would think you would have picked up the basics. Clearly not. ARMH earns more per SoC from the Chinese than it does from Apple, and who is Apple losing out to, in China?