Talk about a reality distortion field. How is this deal any good. Stacy Ragson estimates Qualcomm sell modems to Apple for $15 each. With 22m units that equates to $330m in revenue. Let's be generous to Intel and assume they make 33% gross margin. That means Intel "makes" $110m in revenue. But each year a modem costs Intel $1bn to develop. So we are losing $890m a year. Intel fired 12000 to save $1.2bn. Instead we could just close mobile as nobody else including Intel uses them. Well done guys f---ing awesome business!
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What is more scary is that more than 22million units are required for Apple. The real winner is TSMC. They make it for apple and really don't care if it is Qualcomm or intel they get the money. Intel is stuck paying the difference between what TSMC charges and what Apple will pay.
You think TSMC doesn't know it can stuff Intel! You don't think Apple isn't sticking intel to for sales.
This is going to make the tablet losses look like a joke in the desperate need to intel to look like it is revelant as it becomes more and more irrelevant, LOL
Sorry guys was this a bit heavy?
Ok Aicha sucks! Better :-)
What is your plan ? sticking to a declining PC market and ignoring everything else (billions of phones, IOT devices ...) ? and praying that ARM will not enter PCs and servers business ?
So you think it doesn't cost any extra to develop 7360,7480 ...
I think what I said is very clear. What worries new is that in the 5 minutes it took me to write it I probably spent more analysis effort than Intel has in total in evaluating this business!
OP you are confusing everything
But each year a modem costs Intel $1bn to develop
The failure was trying to get IAs into the modem and building and integrating Intel APP processors around that. But not the modem itself.