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In what way would the successful implementation of chip design services overcome (b)? They would need to make more offering design services, giving away their
by svnt 1y ago
In what way would the successful implementation of chip design services overcome (b)?
They would need to make more offering design services, giving away their design secrets in the process, than selling a product protected by a massive moat. This would be slaughtering the goose.
If you can present an example of someone executing this strategy as a pivot from an extremely high margin proprietary product and increasing their market cap as a result I would be very interested to read about it.
- ra7 1y agoIt isn’t a pivot. Rather it’s gaining business that would otherwise go to Broadcom/Marvell. They continue to keep their high margin proprietary product. They don’t have to give away all their design secrets, just enough to make them a valuable chip design partner. Admittedly, I haven’t thought this out, but I can’t find compelling reasons why they shouldn’t do this.