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by calloc
5533 days ago
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In this case though Intel wouldn't be marketing or selling these chips. That is all on Apple, they would basically become the fab house for the chips. I don't see how that is a retreat, if Apple is a big enough customer to keep their fab houses busy then it is a win for Apple and Intel. |
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It would, however, be pretty big shift in strategy for Intel. They've been the best at silicon process for a long time, and they could have chosen long ago to be a fab house for everyone. That, however, doesn't deliver high enough margins for them.
They want a product that people _want_ -- something that pushes them up the value chain. That's hard, since normal consumers don't understand or see processors. With stickers and ads, they've created brands like Pentium, Core 2, and i7. (My Mom couldn't tell you that she has a Snapdragon processor in her phone, but she knows she has an Intel processor in her computer.) Considering Intel's margins are _much_ higher than most silicon vendors, they've largely succeeded.
This makes them give that up. Intel's fabs are more expensive but superior. Samsung and many others offer slightly inferior chips at lower costs. Winning this business may be good for Intel, but it will hurt their cherished margins. Apple pushes their vendors very hard.