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URL:  http://boards.fool.com/i-am-not-sure-i-understand-moving-to-a-new-30416181.aspx

Subject:  Re: FKA: INTC redux Date:  12/5/2012  7:33 PM
Author:  TMFinept Number:  13019 of 14293

I am not sure I understand. Moving to a new process node is challenging with low yields initially. It is better to fab processors with higher returns until the process yields improve. Therefore the Atoms for phones - tens of dollars - are on 32nm while Server/Desktop/laptop CPUs - hundreds of dollars - are on 22nm.

Initially yes, but once the process is matured, you have the capacity to produce higher clocked, more energy efficient CPUs in higher volumes. New process is proven and refined on high-margin parts and then used to bring lower cost, higher performance parts to the market thereafter.

The costs associated are inevitable and they have already been paid on 22nm. I don't think Intel would be committing to deliver 22nm Atoms early next year if it was losing money on a marginal basis.

Qualcomm's 8960 - 28nm with integrated LTE baseband (Intel's lack LTE) and GPU - is shipping in products already.

Intel does make LTE modems, though. I don't think it's a stretch to imagine that they will be included on forthcoming products, although I am not clear on which and when.

Another factor working against Intel is that Apple and Samsung, 50% of the market, design their own application processors. The remainder of the market - Huawei, ZTE, Sony, HTC, RIM, LG, Lenovo, Nokia etc. - are in varying states of distress and would need a compelling reason to switch. While it is a mistake to write off Intel in phones (and tablets), so far they have been competitive rather than compelling.

That's a great point.
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