Intel's LAME DUCK mobile chips gobbled by CASH COW

Re: Intel never really got the "new embedded"

"Early embedded chips were just old desktop devices with narrower buse".

Sorry, I've been developing embedded systems for 30 years and I must disagree. If anything it is the other way around. Some embedded CPUs were used to make the first desktops.

Sure there have been some x86s put into embedded service, but they've never been more than single-digit-percent players.

Intel have dabbled in the embedded market often, but then dumped the industry - leaving them high and dry.

The part that really stumps Intel is how to make money from embedded and other low margin parts. The Intel corporate DNA is constructed around the concept of spending hundreds of millions to develop a new desktop/server chip, then sell them for hundreds of dollars each. This is a very high margin business.

Embedded systems and phones are a low margin business. 8-core ARM-based smartphone SoCs (eg. Allwinner) sell for about $10. You need to sell millions to break even, then millions more to be profitable.

Re: Intel never really got the "new embedded"

The CPU design did not start with Intel. Their chips have always been mediocre, for one reason or another.

It is only by spending billions to buy the most expensive and cutting edge fabs, that Intel could stay competitive in recent years. But, when you buy so expensive production facilities, it is not possible to sell cheap. And $1000 CPU part price is not something one expects in a mobile device.. Not even $100.

Re: XScale

How did they manage to sell their industry leading ARM division the year before smart phones caught on?

I suspect that it's because the margins on the x86 kit were so much higher than management (and shareholders) didn't see the point in putting any more resources into it. The history of American companies is littered with those that died because they didn't innovate enough but also with those that innovated too much to the detriment of any money-making business.