AI
Tuesday, May 13, 2014 11:31:23 AM
Intel has claimed that the delta between Broxton and Bay Trail-T is $20 in terms of the BoM. I would imagine that this is a strong hint as to how much Intel expects to need to pay out on average for the higher end Bay Trail products, and I would assume that since Bay Trail-Entry cut the # of components needed by nearly 1/2, it would come in at about half of that $20 value.
Only if you assume that Intel intends to reach BOM parity with ARM by Broxton, as opposed to using innovative techniques to get $5-10 ahead.
But I will grant you that it's easy to look at contra-revenues in terms of average pay-outs, but I have told you before that $20 sounds really high, even more so as an average, which implies cases where it's >$20. I suspect Bay Trail is probably in the $10-15 range, and they can probably get it within $5 in some cases. Maybe $20 in rare cases. They'll likely save $5-10 with platform cost reduction techniques, and maybe another $5-10 through generational improvements between now and Broxton. I'm hoping the sum total of these techniques may in fact lead to a competitive edge.
