The Motley Fool Discussion Boards

Previous Page

Investment Analysis Clubs / Value Hounds


Subject:  Re: INTC: Value stock? Date:  11/16/2012  8:32 PM
Author:  putnid Number:  12378 of 24465

Some people believe that Intel will eat ARM's lunch in mobile while others believe the opposite (I'm in the second group). Intel makes what is in essence a standard product in their foundry. ARM allows mobile makers to custom design their chips based on one of several ARM architectures. When using a standard chip you end up with a standard product, not one that differentiates itself significantly from the pack. According to the article "ARM states that there are over 80 licensees for the Cortex family." That's at least 80 firms that are not going to become Intel customers, maybe more. - captainccs

Your takeaway from the Fool blog post is flawed in its understanding regarding the competitive distinctions between Intel and ARMH.In brief, TXN is exiting the mobile market because it's determined that its chip, based on an ARM-licensed core architecture, struggles to compete against other chip-makers also using ARM-licensed core architectures with custom overlays. OK. I get that. It's tough to compete in a market where a whole lotta players develop custom chips around a generic core.

Here's a good overview of the ARM architecture that's being licensed to whomever wants to pay to play:

The ARM architecture describes a family of computer processors designed in accordance with a RISC CPU design developed by British company ARM Hol