Replies to post #116847 on Intel Corp (INTC)

[Tenchu]

FPG,

But from Samsung's perspective they get inexpensive IP that they can customize and manufacture for direct use in end products, increasing their control over their own destiny and avoiding having to share profit margin with merchant component suppliers.

It doesn't matter whether Samsung gets "inexpensive IP" that they can customize or whether they get proprietary IP that they have to pay a premium for but don't have to develop as much. It's all about what gets the job done at the right cost.

By your logic, Linux should have won the consumer desktop market a long time ago because it's essentially free and the OEMs could have used it as "inexpensive IP" that they could customize and develop for their own uses. Instead, Windows dominated despite its high price point and Microsoft's virtual extortion tactics.

Bottom line is that there's nothing inherently better about inexpensive customizable IP over premium proprietary IP. Just ask Steve Jobs, who was adamant about the Apple ecosystem being a walled garden.

Tenchu