>> Today Intel's mobile phone market share is a paltry 0.2% due to purchasing "design wins" and giving millions of Atom CPUs away for free..
I still think that ARM needs to learn alot about business from Intel. It is not just about technology. You need to think of making money. ARM is not doing that right now. Their model is not very smart to allow partners to make all the money while using your IP
It's not always about profit margins and market shares. It's about bringing the technology to the next level, creating new experiences, accelerating the development of new markets. And these are interlinked together. After all, the increasing number of mobile devices and IoT nodes goes with the need for more server capacity.
Most of the discussion is around Intel not being able to stomach lower margins, but in this space Microsoft is competing against Linux being given away for free! Several RTOS companies have recycled into a Linux value-add model, but in the meantime the tools available to roll your own kernel have gotten unbelievably better. In order to succeed here the Wintel guys would have to use the same model that IBM did in the PC days - Take all of the company rules, stuff them in the trash can, and start over.
It is a testing time for the Giants of the PC market!! I guess, the situation is not as easy as it was for Intel to excel in the processor market for personal computers. It is late for joining the party as many others are out there already. But I am hopeful to see some efforts being taken. Anybody could try out Intel's Galileo (Arduino compatible development board), which has a Quark X1000 SoC on it? How does it compare with the other popular ones?
Interesting observations about margins, especially if the "$50 product" you are talking about is a small mobile device rather than a network hub that processes data from large numbrs of small mobile devices.
Those small mobile devices need to move to a much lower price range if there are to be billions of them sold.
Reach of IoT is practically every where, obviously OEMs won't buy $100 chip for a $50 product. A week ago I saw an IoT chip offering at 70 cents. I don't know if the American companies can make money with extreemly low margins, but it's still a big business on the whole.
The best way to handle this is to build some soft IP that can blend for veriety of end applications and enjoy the royalties, obviously ARM can be big winner in this game.
I still belive Intel should come up with X86 soft IP's to be able to compete with ARM in IoT game.
Next level of IoT is handling data from billions of devises, which requires high end processors and networking products. These are low volume high margin products where Intel has obvious advantage but it seems ARM is catching up with A57 range of processor cores.
There is a big IoT opportunity ahead, one has come up with a good business model to win it.
> ARM seems to be a great technology company. I think it. The problem is that it has a really bad business model. It makes pennies while its customers make real money. Yet that model seems to be the reason why it is infectous in the ecosystem as it drives growth and get more companies to adopt its platform.
Why do you think ARM has a bad business model? Most people would agree ARM has one of the best business models of the industry. Sell many billions of chips and receive a few percent of the price they are sold at. It's practically free money at low risk (eg. no expensive fabs), resulting in great margins. Have you actually looked at the financial statements?
Why would Intel even want to buy ARM? Ironically Intel used to make ARM CPUs which were used in lots of phones but they sold it to Marvell. They strongly believe x86 is far superior in every way. Look at Atom for example, which they said was going to take over the mobile world 6 years ago. It wouldn't be possible to use the internet from ARM, they claimed, you always need x86 for performance and compatibility.
Today Intel's mobile phone market share is a paltry 0.2% due to purchasing "design wins" and giving millions of Atom CPUs away for free... The business unit responsible for Atom is running on a $0.5B loss per quarter as a result. Flogging a dead horse?
So reviving a 25 year old 486 is their best effort at getting back into microcontrollers (after letting the 386/486 microcontroller market die) - seriously, what are these guys smoking?!?
@goafrit: This will entail Intel to drift to new business model. Current Intel structure has very high overheads and this is satisfied with high margin business. When they move to low cost products, they need new set of people at low cost. Will Intel float new organization for this?
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