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The problem intel had with the iPhone has very little to do with the power issue.. Intel is not an idiot.. If they sell a 1Ghz processor to apple for $20 (which
by xt00 10y ago
The problem intel had with the iPhone has very little to do with the power issue.. Intel is not an idiot.. If they sell a 1Ghz processor to apple for $20 (which is the type of pricing they would be targeting for the iPhone), then they know they will want an upgraded version in 1 year that is at least 20% better.. So it would only take 3 years to be selling chips to Apple that would be on par with chips they sell for about $150.. So they would be underselling themselves by a vast margin and the HPs and Acers and Asus and Sonys would be saying wait we have been your customer for 10+ years and you are selling to these guys at a ridiculously lower price that you have only been selling to for a couple of years??? Basically for intel to make that decision would have been something of a suicide with their current market.. So they were the old guard and didn't want to give up the golden goose.. Which is a great life lesson for people starting companies.. Find a market that people charge too much in and then find a way to get into that market with a new technology that you know if they went into would drop their margins.. But for you would be great since you aren't such a huge company as the incumbent..