Intel Corp (INTC)

[Tenchu]

FPG,

Where did I say anything about fabless being an advantage for QCOM?

You were talking about how Intel spends too much to maintain their process lead, and that QCOM found a way to win higher profit margins than Intel. This was in response to Beamer claiming that Intel has a cost advantage over the competition.

When I pointed out to you that QCOM's profit margins are mainly the result of their IP-only licensing revenue, you say something completely irrelevant, namely that it's good not to have all of your eggs in one basket.

None of this really supports your ultimate view that the industry is moving toward inexpensive roll-your-own IP. I already addressed how that view doesn't match reality, and that we're already seeing a new class of proprietary IP crop up, such as Apple's "walled garden."

In any case, if you want to argue that Intel is always going to charge too much for their smartphone and tablet components compared to ARM, be my guest. I don't believe so; in fact, Intel has been more than willing in the past to collapse margins in order to win market share. (Just ask Mas, who was a frequent critic of some of those moves.)

Tenchu