November 14, 2011

Intel vs. everyone in smartphones

Intel makes about $5/smartphone*.

As far as I know, they made $0 per featurephone (voicemail and SMS etc didn't run on x86)

Re: smartphones

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 about $2,000 per Xeon server / 400 phones/tablets

Posted by amol at November 14, 2011 1:40 PM