Intel Corp (INTC)

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FPG,

Intel's biggest problem, IMHO, is the effect ASPs that ongoing competition with ARM will have.

Sorry to be nitpicky, but that's not THE actual problem. Instead, that negative outcome will be the result if Intel doesn't address the actual problem.

And that is the fact that Intel is struggling to be competitive in the market for mobile devices. And by "competitive," I don't mean a "me too" kind of strategy that Samsung is pursuing, for instance. I mean the ability to bring something to the table that the other companies cannot.

What is that thing for Intel? It used to be superior process technology and x86 design expertise which coupled software compatibility with performance. No one else was able to provide that, although AMD came close at one time, even surpassing Intel at its own game for a bit.

Now what is it? Intel still is king of semiconductor manufacturing, but its x86 design expertise isn't relevant anymore. Apple and Google has already created ecosystems where x86 compatibility is irrelevant.

So that leaves manufacturing, which ideally should help Intel make chips faster, cheaper, and less power-hungry than anyone else. But that's not happening, and I'm starting to wonder why it's taking so long for Intel to become more than just a mere "player" in the mobile market. Cost, "contra-revenue," all that crap shouldn't even be an issue at this point, because it's been four years since Intel decided to seriously pursue this market (after the Netbook boondoggle).

In conclusion, you're probably asking, "So ... what's your point?" My point is that I hope Intel aims higher than just "me too" status. I hope Intel isn't aiming for the type of competition with ARM that leaves ASPs decimated. Rather, I hope Intel is aiming for advantages that allow them to charge premiums for their chips, because everyone will want to buy Intel chips and no one else's.

If you still don't understand, read this wonder article that I linked to last month, entitled "Competition is for losers" ... http://online.wsj.com/articles/peter-thiel-competition-is-for-losers-1410535536

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