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Actually 16.9% isn't much below INTC's 18.2% operating margin for 1Q16. The 5% number is more just an outlier due to revenue dropping much faster than expenses
by fisherjeff 10y ago
Actually 16.9% isn't much below INTC's 18.2% operating margin for 1Q16. The 5% number is more just an outlier due to revenue dropping much faster than expenses - the article mentions losing Samsung and possibly Apple as customers in a pretty short period of time. That certainly does suggest trouble ahead for QCT but I would argue that it doesn't necessarily say much about the industry as a whole.
- samfisher83 10y agoThe reason there overall margin is 18% is due to mobile. Their mobile margin is -30%. The rest of their business is closer to 30%. https://www.sec.gov/Archives/edgar/data/50863/000119312513065416/d424446d10k.htm#toc424446_10 https://www.sec.gov/Archives/edgar/data/50863/00011931251306... As it stands today you can't really say it was a mistake to not get into mobile. They don't have the competitive advantages they had with x86. They had a monopoly there, but in the ARM space they would be just one of many.