Replies to post #112520 on Intel Corp (INTC)

[Golfbum]

Look at the various Apple revenue streams on the iPhone.

First they get the price of the phone itself. The carriers subsidize the price to the user so Apple gets more than that.

Then they licence the damn connector!

Then they get a chunk of every app sold due to the app store.

Plus lots of Apple addons with the Apple logo on them.

I'm sure they don't lose money on the phone but it's the rest of the stuff that likely really makes the profits since the COGS is very low on a damn license!

gb

[smoothh20]

How much money for makers other than Apple and to a lesser extent Samsung plus Android. According to the Digitrend article Apple raked in 71% or the profits. It looks to me it's a dog eat dog market with huge risk that could catch up to Apple if they don't keep up the winners. As far as Intel is concerned I am a long term and time investor willing to wait. It seems to me it is far simpler and less costly, and less risk to just make the chips. I agree that at $20 a chip it isn't enthralling, however, I trust Intel management to have worked through the goals. They have the competitive fabs, they need a knockout chip!

What can I say? This is business and where there's risk there's profits. So you're willing to have Intel sit on the sidelines and hawk their chips to anyone who will listen. Did you forget to address the vertical market factor?

I admit that I am amazed with the appeal of the iPhone in particular and smartphone market in general. It is mystifying. My daughter calls her Motorola android a little buddy. A Star Wars effect? Therefore for me it is probably the right direction for Intel because the smartphone market is here to stay and I hope smartphones will become an compliment to the PC.

Fixed: Therefore for me it is probably the ONLY direction for Intel. Intel already owns the PC market.

No question Apple has made a killing with the iPhone but from my speculative perspective I look at the downside. No assurance that Apple fortunes will continue. I wouldn't like getting caught in the upside rush and the downside could be sweet!

Oh, OK. So maybe Apple goes from making $20B to 10. So, then that's the market. But that market will only die if another market comes along to kill it. Believe me, it's here to stay, and Intel could be better off in a vertical market. To not try is to not succeed either.

“Some food for thought from a very interesting article:
“So, Apple was of course hugely profitable but here in this contest, the amount of profits is irrelevant, huge profits this quarter at the cost of winning the decade-long smartphone OS war, is very shortsighted indeed, better to optimize profit and market share to win the long game. All we want, is for the contender to be profitable in its smarpthone races, excess profits are good news for Wall Street and short-term investors but not meaningful in the Bloodbath, where long term viability is the point. So Apple gets no bonus for its massive profit haul, only that it clearly did good being profitable where many rivals are not. Apple scores a B-, a good but not excellent score.”

LOL. This guy has to be in a think tank somewhere. He certainly isn't in business.

Smooth