ARM Fits Manufacturers’ Needs

Manufacturers of computer products have tiny margins while M$ rakes in $billions just for selling permission to copy. ARM offers a way to larger margins for manufacturers.
“Although Taiwan’s IT players are capable of massively commercializing IT products that average consumers can afford, they have failed to keep the related profits in their pockets. Since Taiwan’s IT supply chain is already known for low gross margins, developing new products will only cause Taiwan IT players to work harder without an equivalent payoff; therefore, Brown believes that tablet PC’s open platform will give Taiwan’s IT players a chance to each receive a fair amount of profit, unlike the current model in which Intel and Microsoft receive the largest share of profits, Brown explained.”

see Digitimes

If the licensing fee is replaced by $0 and the ARM CPU costs less to buy, cool and house, manufacturers’ costs plummet and they still have performance the consumer wants. They can cut prices to consumers to gain share while still increasing margin. This will give years of increased profitability because Wintel is locked in to their own products and cannot change rapidly. The market for small cheap computers will be explosive and ARM is the detonator. This message will be accepted by manufacturers especially for smart-phones and tablets but it can also happen for notebooks and desktops as early as next year.

About Robert Pogson

I am a retired teacher in Canada. I taught in the subject areas where I have worked for almost forty years: maths, physics, chemistry and computers. I love hunting, fishing, picking berries and mushrooms, too.
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