Hi Joe. No, I would say that this is normal in the industry. The component makers are usually at a lower margin than the final product makers for consumer electronics. There may be some exceptions, but it is a supply and demand market. It will stay this way as long as the customer is driving the supplier. Note that the final consumer has little impact.
Howdy stranger! BTW, this is the case in every segment where the semi supplier is fighting for 30 points of margin on components and the end OEM like Apple is making close to 50 points of margin on the end product. Something is wrong here..
All the potential suppliers use TSMC for Foundry capacity. The problem is that TSMC doesn't have enough 28nm capacity for Qualcomm multimode let alone any of the others. This is why TSMC recently hiked their capex plans for 2012.
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