Ruminations on the electronics industry from David Manners, Senior Components Editor on Electronics Weekly.
Are Ubiquitous, Single-Sourced, Proprietary Microprocessors A Good Idea?
The distinguished Linear Tech alumnus and top-notch semiconductor analyst Doug Freedman reckons Intel’s shares would be $40+ if it ditched mobile.
Of course Intel’s shares have been shooting up recently and some thought this was because it was might exit mobile.
Others attributed it to the recent PC boom on the back of the XP effect
Still others thought it due to ‘operational efficiencies’.
Freedman points out that Intel is chucking away $1 billion a quarter on mobile where it has a falling ‘mid-single digit’ share of the baseband market while Qualcomm has 62% and MediaTek a growing 14.4% share.
There are three questions:
Is Intel trying to do the equivalent in mobile of introducing a new PC microprocessor architecture in 1990?
Is the mobile industry determined to stop Intel doing to it what Intel did to the PC industry?
Is the electronics industry determined to never again allow a ubiquitous, single-sourced, proprietary microprocessor architecture?
If the answer to those questions is Yes, then Intel is wasting its $4 billion a year.