By: Michael S (already5chosen.delete@this.yahoo.com), January 29, 2013 6:09 am
Room: Moderated Discussions
Richard Cownie (tich.delete@this.pobox.com) on January 29, 2013 4:42 am wrote:
> Very interesting analysis, thanks.
>
> I think the argument about area and cost - and Intel's processing advantage -
> is all correct. What may be missing is the impact of the different business
> strategies: Intel really wants to sell those server cpus at very high margins -
> say 300mm2 of silicon for $1500. But it's going to be facing a lot of competitors
> from the ARM/cellphone world, e.g. Qualcomm, who would be very happy to sell
> 10M server cpu's at dramatically lower margins. Intel's technical advantages
> alone won't allow them to preserve their high margins on server products (just
> as the advantages of RISC servers couldn't protect them against Intel's high-volume
> good-enough-and-much-cheaper P6). The future may still be predominantly x86 -
> but the business will look very different.
>
How competition from low-margin Qualcomm is different from competition from low-margin AMD server chips? Of from Intel's own medium-margin Xeon-E3 line?
> Very interesting analysis, thanks.
>
> I think the argument about area and cost - and Intel's processing advantage -
> is all correct. What may be missing is the impact of the different business
> strategies: Intel really wants to sell those server cpus at very high margins -
> say 300mm2 of silicon for $1500. But it's going to be facing a lot of competitors
> from the ARM/cellphone world, e.g. Qualcomm, who would be very happy to sell
> 10M server cpu's at dramatically lower margins. Intel's technical advantages
> alone won't allow them to preserve their high margins on server products (just
> as the advantages of RISC servers couldn't protect them against Intel's high-volume
> good-enough-and-much-cheaper P6). The future may still be predominantly x86 -
> but the business will look very different.
>
How competition from low-margin Qualcomm is different from competition from low-margin AMD server chips? Of from Intel's own medium-margin Xeon-E3 line?
