Replies to post #114216 on Intel Corp (INTC)

[Sarmad]

>> By using N-1 generation technology Intel is able to price where they need to

shouldn't phone components use the most advanced process node to benefit from low power usage ?

Also, wasn't the N-1 node the target for flash memory ? Yet to be competitive there Intel has to manufacture it in their most advanced node ?

http://www.eetimes.com/electronics-blogs/other/4369862/Delving-deep-into-Micron-and-Intel-s-20-nm-64-Gbit-MLC-NAND-flash-memory

Delving deep into Micron and Intel’s 20-nm 64-Gbit MLC NAND flash memory

[VeeCee]

Yes, if it can be done then it will be fine. But at the moment, the extra capacity is not being utilized with mobile chips and PC chips are not needed in the original qty. planned.
That is why I believe the reasoning of Goldman Sach is correct. It may be wrong in estimating Intel target price of $16.00
I don't like it but reality is that Intel GM will come down.

[wbmw]

I have been complaining about the delays in moving the phone products to newer technology, but I am now thinking I had that wrong. I now think penetrating the market is going to be more about cost than performance or features. By using N-1 generation technology Intel is able to price where they need to in order to use up that excess older capacity, while keeping the laptop market on the newer technology.

I think it needs to be a delicate balance. Performance per watt desires the latest generation process, while performance per cost desires the process closest to peak capacity. It takes about a year or so for a process to ramp to peak capacity, but Intel is about 2 years ahead of their competitors in process node cadence. Therefore, they can be a generation ahead on both perf/watt and perf/cost by building their phone chips in the second year of a process (i.e. 2013 for 22nm, 2015 for 14nm, 2017 for 10nm).

[Saturn V]

Your Quote :"By using N-1 generation technology Intel is able to price where they need to in order to use up that excess older capacity"

I think that your above statement is one of the reasons for the problems in breaking into the phone marketplace. Initially the Atom was too hungry and lacked the SOC features. That has finally been corrected. Intel thought that x86 compatibility was going to be the magic bullet for starting off the MID device. The Apple iPhone was launched at about the same time,and we all know the history. Finally Intel has the design and process techniques in place for marginally better products.But to gain major market share into a new market requires a dramatically better product like the iPhone was.
So Intel will not take a major share unless Intel shows off the performance of a 'N' process or a 'N-0.5' process. Using a 'N-1' process will optimize profits, and can be adopted once Intel has a major share of the market. IMHO unless Intel goes aggressively for the 'N' process strategy, and forgoes some of the short term profit, it will have a minor presence, and will slowly lose its preeminent position in client processing.I am disappointed that the next gen Atom show up late next year and not earlier. Difficult times for a long term investor like me !