Replies to post #112449 on Intel Corp (INTC)

[mmoy]

That's a good way to put it but Google makes a ton of money in smartphone usage. Amazon is pushing in that direction but it's hard to figure out how well they are doing profitwise with it.

[herb will]

“The vertical model seems to be winning for now. For many reasons, the PC horizontal model does not work in the phone space. .”

Well Apple gets the frosting on the cake, ”because consumer demand for the iPhone remains phenomenally strong”. Of course that could also change as well and if it does Apple could go the way of the 3 Ring Circus. Should be noted that revenues from iPhones have been approximating 50% of total revenues, actually just 46.38% last quarter. iPhone revenues fell 28% during the current quarter and net profit fell 24% from the previous quarter. I think Intel would be better just selling the smartphone chip that is of course if they can churn them out and keep the fabs occupied.

"According to Canaccord Genuity, Apple accounted for a mere 6.5 percent of the global handset market — and 16.1 percent of the smartphone market — but managed to rake in some 71 percent of the profit from smartphones. “

http://www.digitaltrends.com/mobile/how-apple-and-samsung-cornered-all-smartphone-profits/#ixzz28YO0wdnP

http://www.forbes.com/sites/narrativescience/2012/07/17/forbes-earnings-preview-first-horizon-national-3/

http://www.sec.gov/Archives/edgar/data/320193/000119312512312355/d383855dex992.htm

http://www.sec.gov/Archives/edgar/data/320193/000119312512178928/d339184dex992.htm

[spaarky]

For many reasons, the PC horizontal model does not work in the phone space.

The "PC" horizontal model hasn't even really been tried yet in the phone space... it's just starting now.

-=spaark=-

[Saturn V]

Quote: "the PC horizontal model does not work in the phone space."


The Android is already outselling the iPhone by a mile. The phone Hardware manufacturers are not making much money just like the PC Hardware space. Google is making tons of money, but we cannot tell how much of it is attributable to the Android. The foundries are making money from the phone chips,but that does not show up in your statistics. Qualcomm is also making lots of money off its chips as well, and all its chips end up in phones.

A flawed and too broad a conclusion from one snippet of data. The cell phone handset business has gone thru several disruptive phases. Motorola dominated the analog handsets, but was surpassed by Nokia when it introduced low cost digital handsets. Blackberry dominated the first smart phones, soon to be overtaken by Apple/Android/Samsung smartphones. Who knows which disruption comes next ?