Replies to post #116868 on Intel Corp (INTC)

[Golfbum]

With 100K employees and the existing BOD having gone through the "foundry" business model, no doubt, dozens of times at SLRP, I'd be astounded if an outsider came in "RR style" and declared foundry as the shiny new thing.

Furthermore the same analysts who keep declaring that foundry esp Apple foundry brings exciting possibilities will bemoan the gross margin hit that would no doubt come with it.

gb

[Sarmad]

>> Could you imagine the bumpy road Intel would have gone down if it had agreed to license and fab PowerPC processors to capture Apple as a customer a decade ago?
<<

Yes, of course. It would have hampered the network effect for X86. But that aside, any supplier to apple is continuously whip-sawed by the multiplied uncertainties of Apple's loyalty to its supplier, and the market's liking for Apple's products. To fab for Apple, unless done for very exorbitant price and margin, is a loser's game.

I think the only reason that Apple would want to lure Intel into bidding for non X86 systems is to be able to undercut other suppliers on price or terms. I hope Intel will not fall for that ruse.