November 14, 2011
Intel vs. everyone in smartphones
Intel makes $2-8/smartphone.
His confidence is based on the calculation that for every 600 smartphones or 122 tablets running Netflix (NFLX) videos or Facebook updates, there's an Intel-powered server in a back office somewhere churning out data. Otellini predicts that the thirst for mobile video, audio, and other content will help push Intel's data-center chip sales to $10 billion this year--about a fifth of projected revenue--and to $20 billion within the next five. Its top-of-the-line Xeon server processors cost as much as $4,616 each, compared with around $15 each for smartphone chips. (Processors for PCs go for $90 on average.)
* Assumes $1,000 per processor / 500 smartphones = $2/phonePosted by amol at November 14, 2011 1:40 PM