By: anon (anon.delete@this.anon.com), January 31, 2013 6:47 pm
Room: Moderated Discussions
Richard Cownie (tich.delete@this.pobox.com) on January 31, 2013 5:37 pm wrote:
> anon (anon.delete@this.anon.com) on January 31, 2013 4:59 pm wrote:
>
> > Not a lot more money, the same money. Look, it is you that speculates the revenue and profit
> > margins of ARM market will become enough to support superior CPU design than Intel. If Intel
> > take a significant chunk of that exact market, it is more for them and less for others.
>
> But how would Intel "take a significant chunk" ? As I described, the current
> ARM SoC market is price-sensitive and extremely competitive. Intel can't wave
> a magic wand of awesomeness and take the market.
By creating a product with significant advantages. You're acting as if it would be impossible for Intel to do this.
> They would need a product with
> compelling advantages - which hasn't happened yet even though they've been trying
> for a while;
It has not happened with x86. The "compelling advantages" bar for x86 is far higher than it is for ARM. If they had a 10% performance or power advantage with ARM, they could take market.
> and they would need to sell it at a healthy margin - which is awfully
> difficult when there are several competent suppliers already in the market.
Other competitors also need to sell it at a healthy margin if they are supposed to generate enough gross profit to be able to invest in competing with Intel in mfg and design.
> anon (anon.delete@this.anon.com) on January 31, 2013 4:59 pm wrote:
>
> > Not a lot more money, the same money. Look, it is you that speculates the revenue and profit
> > margins of ARM market will become enough to support superior CPU design than Intel. If Intel
> > take a significant chunk of that exact market, it is more for them and less for others.
>
> But how would Intel "take a significant chunk" ? As I described, the current
> ARM SoC market is price-sensitive and extremely competitive. Intel can't wave
> a magic wand of awesomeness and take the market.
By creating a product with significant advantages. You're acting as if it would be impossible for Intel to do this.
> They would need a product with
> compelling advantages - which hasn't happened yet even though they've been trying
> for a while;
It has not happened with x86. The "compelling advantages" bar for x86 is far higher than it is for ARM. If they had a 10% performance or power advantage with ARM, they could take market.
> and they would need to sell it at a healthy margin - which is awfully
> difficult when there are several competent suppliers already in the market.
Other competitors also need to sell it at a healthy margin if they are supposed to generate enough gross profit to be able to invest in competing with Intel in mfg and design.