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Intel Has Beautiful Mobile Dreams, but I'm Going to Crush Them With My Eighth Grade Math Skills


Intel still remains challenged within the hot mobile device market.

So to get Apple onboard, Intel has got to come up with something truly better than what it can cook up on its own, and there's no sign of that happening yet.

And don't forget, Apple is an incredibly combative company, and it likely won't take kindly to Intel cozying up to Google.

Now let's look at this issue from another perspective. Let's assume Intel does start getting more design wins. That would be destructive for the ARM-based community, but it's not necessarily a sure path to riches for Intel.

For one, the smartphone market, while growing quickly, is actually slowing in growth. And there is still no tablet market -- only an iPad market.

If you don't believe me on that front, please read these two articles: IDC's 1% Tablet Forecast Increase Masks a Huge Decrease in Expectations for Google Android and Why the Google Android Tablet Market Is Far Weaker Than It Seems.

And secondly, in PCs, Intel's only real rival was AMD (NYSE: AMD), which except for the Opteron-driven glory days in 2004-2005, hasn't been much of a competitor. Heck, AMD didn't get into Dell (NASDAQ: DELL) until 2006!

That's why Intel was able to score gross margins in excess of 60%.

Mobile, however, is a whole other story because it has to compete with Qualcomm, NVIDIA, and the rest of the gang for the slow-growing half of the market. (Remember, it's effectively locked out of the high-growth Samsung and Apple!)


So yeah, this Intel/Motorola thing, like, totally isn't a big deal.

Twitter: @MichaelComeau

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