“Piper Jaffray’s Gus Richard today reiterates an Underperform rating on shares of Intel (INTC), and a $20 price target, writing that the company ‘keeps investing in fabs and process technology that is likely to result in diminishing returns, in our view,'” Tiernan Ray reports for Barron’s.
“Richard’s first point of concern is the article this morning by Jessica Lessin, Lorraine Luk, and Juro Osawa stating that Apple (AAPL) has signed a long-rumored chip deal with Taiwan Semiconductor Manufacturing (TSM) to move some production away from Apple’s chip supplier and arch-rival, Samsung Electronics,” Ray reports. “Despite Intel’s lead in chip technology, Richard actually thinks TSMC, IBM and others pose a credible threat, in part because Intel doesn’t have the right intellectual property to fill the fabs.”
Read more in the full article here.
Related articles:
Apple to buy chips from TSMC as it attempts to extricate itself from dependency on Samsung – July 1, 2013
TSMC wins three-year deal to supply Apple with A8, A9, and A9X chips, say sources – June 24, 2013
‘Breakthrough Apple product’ looming? Imagination Technologies and TSMC strengthen technology collaboration – March 25, 2013
TSMC CEO comments signal massive next-gen Apple A-series chip orders – January 19, 2013
Intel held onto x86 much to long. Ballmer is going to be unique in American corporate annals. He is going to bring down two of what had been America’s most successful firms simultaneously.
May Ballmer reign for as long as it takes!
Ballmer and Ortellini made quite a pair.
The only pair to beat three-of-a-kind.
Intel will create “right intellectual property to fill the fabs.”
God, I loathe beancounters.
+1
Beancounters? Beancounters is a common term for accountants. This article is clearly written by a journalist, not an accountant or an analyst.
True, the dancing monkey boy is holding back Intel as well as M$.
Intel let Apple walk. All Apple wanted was kick-ass, energy-efficient chips. Intel did not deliver. So Apple designed their own chips. And continues to design their own chips. Unfortunately, such unique and important technological innovations as superior chip design are lost on most of the financial analyst community because, you know, the last few iPhone casings have all looked pretty much the same !!!
Except the Intel chips powering MBA, MBP and MacPro’s.
The Financial Analyst Community = pretentious but witless followers of fashionable but transient technical theories peddled by shadowy insiders who are indistinguishable from paid shills in the deleterious effects of their poisoned advice
BOOM! There it is! 😉
Eloquent and logical, as always.
bingo.
ARM-based processors for iPhones and iPads and x86 processors for laptops and desktops are two different animals. It is an apples to oranges comparison (no pun intended).
Intel is still in the driver’s seat when it comes to laptops/desktops. Sure, it would be nice if they could get the embedded market, too, but that’s never going to happen when you can take an ARM-based design to any fab and have it made.
Don’t worry about Intel. They will be fine.
Comparing as apples and oranges from the perspective of comparing the chips, yes. But from comparing strategy insight and foresight, Intel followed the PC/MS mindset and has lost. Apple, or rather SJ went to Intel for a chip to power the iPhone, but Intel priced it too high and would not come down. So, SJ went with their own basic ARM design.
It is not really apples and oranges; they had the chance, they had the chip, they didn’t take the risk. Now they are basically being forced into a vertical market.
May dancing Monkey Boy & the Bunny Suit Wintel Man have a long term marriage as it is legal now to do it.
The dancing monkey boy will not marry, or mate with anyone or anything, ever, in any sane universe. Let’s be serious here
Intel admitted that they declined to build ARM chips for Apple prior to the release of the iPhone. Their loss.
I like Apple moving away from Samsung. TMSC needs to successfully build new designs and also get the volume ramp up in time. Apple could consider investing in the company and potentially take it over if that would provide an advantage.
Less intel is good.