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In the short run, you are correct. However, by looking at history, it seems that the high-end chip manufacturers always end up being replaced by the low-end ma
by Athas 9y ago
In the short run, you are correct. However, by looking at history, it seems that the high-end chip manufacturers always end up being replaced by the low-end manufacturers, as the focus on cheap, small, low-power designs end up providing various strategic advantages (and raw revenue for product development). That's how Intel replaced the various RISC manufacturers in the 90s.
Of course, the field is young enough that this has only happened two or three times, so it may just be a coincidence. Still, I like the thought of ARM chips replacing Intel in ten years, and twenty years later ARM being replaced by whoever currently makes the chips for those musical greeting cards.
- sah2ed 9y agoExactly -- the key thing is the historical cost structures of the high-end makers makes low-end chip making highly unattractive which was why it was easy for Paul Otellini to say no to Apple to make chips for the iPhone. In the end, low-power chipmakers like ARM have no where else to go but up -- they can slowly move up-market and over time, enjoy the same high margins but at much lower costs relative similar to entrenched players like Intel.