Intel Corp (INTC)

[mas]

1) We believe the vast majority of investors with whom we speak are well aware of the issues and expect at least some of the models to be launched w/ Samsung’s own Exynos processor so the press is hardly uncovering new information; 2) our work has long suggested that QCOM was rushed and didn’t have time to customize the ARM core for 20nm for the 810 and there was an issue w/the ARM design (AAPL is already fully customized, for example, so it didn’t have this issue); 3) we believe the design issue was at the base layers – not metal as indicated by some competitors in Asia – and the resulting delay was ~2-3mos; 4) we believe QCOM already solved the issue and production for 810 is ~2-3mos behind schedule; 5) this press report speculates that Samsung will use Exynos for ALL models – we consider this UNLIKELY as Samsung would have to use a different modem and RF in addition to the SoC – this is a very big undertaking and our work suggested Samsung was not ready with a complete solution.

We shall see .