This is an interesting twist in the processor wars, here is the #1 cloud company that is turning its profits in providing cloud services in to processor R&D to build new CPUs. This is a much more important announcement than the press is giving it credit for. I have argued in the past the Intel "lost" the smartphone CPU war because Apple decided not to wait for them to come up with some high margin processor compromis…
> I have argued in the past the Intel "lost" the smartphone CPU war because Apple decided not to wait for them to come up with some high margin processor compromise and instead to re-invest profits into the development of bespoke processors that gave their products an edge over their rivals. Others like Samsung followed suit with own processors for Android. Kind of a weird way to phrase it given that iPhone 1 through…
It was Steve's idea that Intel had the best chip and Fab, and he wanted the best in iPhone. He was willing to wait for Intel to give him what he demands, the price he asked for was way lower than Intel's usual margin but very high for Apple's BOM Cost.
Ultimately one of this Top Engineers put his name badge on the table and said if Steve insist on Intel he will quit. Steve Jobs ultimately backed off. They than bought P.A. Semi and the rest is history.
Intel's failure to capture the iPhone SoC opportunity was described by Paul Otellini, Intel CEO at the time as the biggest missed opportunity / failure of his life. ( And I am still quite pissed they forced out Pat Gelsinger )
If Steve had persisted he would have repeated the same Apple Lisa mistake. And the world might not be quite the same.
*Makes me rather sentimental while typing this. I miss Steve Jobs.