[wvaske]

They don't really compete with desktop processors. During the initial phases of production, there are still relatively high defects per wafer. But the mobile chips are small so you lose a small percentage of chips per wafer due to these defects.

After the defect rate decreases enough then the larger chips will start to get made (GPUs, and CPUs).

If this is true, Apple is getting exclusive access for a period of time when the failure rates are highest then other customers will get their allotments down the road when defect rates are at acceptable levels for the size of their chips.