Intel Corp (INTC)

[chipguy]

From the table, I think only HP ships Xscale (right ?). They sold ~430k units per quarter
in Q2, 02. Assuming that shipment stayed flat, we are looking at an additional 3.9Mil Xscale
untils per quarter. As ASP of ~$75 would result in an incremental $300mil per quarter. Not
bad, if his prediction comes true!

The ASP for Xscale is probably less than half of your figure. OTOH the total market for
ARM architecture chips right now is about 140m devices per quarter and has been
growing rapidly for the last 3 or 4 years. The PDA market is sexy but only a tiny sliver of the
overall ARM market. The bread and butter is in cell phones. Third generation cell phones
are comparable to PDAs in compute capability and Intel seems to be very successful in
scoring multiple design wins for upcoming 3G phones. This segment is a tiny fraction
of the cell phone market right now but if it takes off then we might see Intel's shipments
of Xscale soar into the many 10's of millions per quarter for just that one application
segment. And don't let the ASP fool you, these are small devices made in fully paid
out 180 nm fabs so the margins are probably incredible. Then perhaps the telecom
division will switch from being a sinkhole into a money machine.