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Does Qualcomm Need Apple?

June 30, 2016 by  
Filed under Computing, Smartphones

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The fanboys aka the Apple Press has been running down Qualcomm since its favourite company announced it was buying chips from Intel, but there are good reasons why the American chipmaker should not care that much.

As we have been saying for ages, Jobs’ Mob is no longer exclusively going with Qualcomm to provide modem chips for the upcoming iPhone 7. The deal, while large, is tailored for some of Apple’s partnerships. Intel gets AT&T phones and Qualcomm remains the supplier for Verizon network phones and for China.

The press has been claiming that it is terrible news for Qualcomm. But it appears Qualcomm knew it was coming and had already factored in the loss of the business into its results. The reason Qualcomm is not losing any sleep over the deal is because the most Intel is going to get is a third of the iPhone modems. This is what in financial terms is considered a “pisser” but hardly a reason to jump off any buildings over.

Other good things are happening to Qualcomm which more than balance out what has been lost to Intel. Firstly its latest Snapdragons are selling extremely well and secondly the shine is starting to go off its number one rival MediaTek.

For a while, naysayers have been predicting that MediaTek was going to sink Qualcomm. In fact there was even a suggestion that Qualcomm should get out of chipmaking and become a patent troll.

MediaTek had been luring away Qualcomm customers with cheaper chips, which combined with Apple, Samsung and Huawei making their own chips was creating a perfect storm of doom.

Now there is a suggestion that MediaTek’s growth wagon might have stalled. MediaTek’s sales fell 9.4 per cent annually last quarter to $1.7 billion. Its operating margin halved from 16 per cent last year to eight per cent. The reason was due to higher expenses across the board. This meant that its net income fell to $136 million. MediaTek is still more profitable than Qualcomm’s chipmaking division has a wafer thin 5 per cent last quarter.

Analysts expect MediaTek to post double-digit sales growth fuelled by rising demand for 4G smartphone chips in China. But its margins are also expected to keep contracting due to tough competition from Qualcomm and Spreadtrum.

Another risk for MediaTek is its dependence on China. Taiwan just got rid of the pro-unification KMT party, which controlled the presidency for the past eight years, in favour of the pro-independence DPP party.

MediaTek needs direct investments from mainland China to fight off Qualcomm, but it is finding that the Taiwanese government is blocking that sort of investment cash.

All this is giving Qualcomm a fighting chance in the area where it makes a lot of its cash. Sure its margins might be lower, but it still making more money. Enough so that it does not have to worry about losing a small about of dosh to Intel.

Courtesy-Fud

Apple Finally Drops iCloud Storage Plan Prices

October 2, 2015 by  
Filed under Computing

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For the second time in as many years, Apple dropped prices for its expanded iCloud storage plans, putting costs in line with rivals like Google, Microsoft and Dropbox.

Apple announced changes to iCloud extra storage pricing earlier this month at the event where it unveiled new iPhones, the larger iPad Pro and a revamped Apple TV.

Although the Cupertino, Calif., company did not boost the amount of free storage space — as Computerworld speculated it might — and instead continued to provide just 5GB of iCloud space gratis, it bumped up the $0.99 per month plan from 20GB to 50GB, lowered the price of the 200GB plan by 25% to $2.99 monthly, and halved the 1TB plan’s price to $9.99.

Apple also ditched last year’s 500GB plan, which had cost $9.99 monthly.

The new prices are in line with the competition; in one case, Apple’s was lower.

Google, for example, hands out 15GB of cloud-based Google Drive storage for free — triple Apple’s allowance — and charges $1.99 monthly for 100GB and $9.99 each month for 1TB. The smaller-sized plan is 33% more per gigabyte than Apple’s 200GB deal, and Google’s 1TB plan is priced the same as Apple’s.

Microsoft also gives away 15GB. Additional storage costs $1.99 monthly for 100GB — the same price as Google Drive — while 200GB runs $3.99 per month, 33% higher than Apple’s same-sized plan.

Microsoft does not sell a separate 1TB OneDrive plan but instead directs customers to Office 365 Personal, the one-user subscription to the Office application suite. As part of the subscription, customers are given 1TB of OneDrive space. Office 365 Personal costs $6.99 monthly or $69.99 annually.

Source-http://www.thegurureview.net/aroundnet-category/apple-drops-icloud-storage-plan-prices.html

Intel Buys Into Altera

April 15, 2014 by  
Filed under Computing

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Technology gossip columns are full of news that Intel and Altera have expanded their relationship. Apparently, Altera has been Intel’s shoulder to cry on as the chip giant seeks to move beyond the declining PC market and the breakup of the Wintel alliance. Intel took the break up very hard and there was talk that Alteria might be just a rebound thing.

Last year Intel announced that it would manufacture Altera’s ARM-based quad-core Stratix 10 processors, as part of its efforts to grow its foundry business to make silicon products for third parties. Now the two vendors are expanding the relationship to include multi-die devices integrating Altera’s field-programmable gate arrays (FPGAs) and systems-on-a-chip (SoCs) with a range of other components, from memory to ASICs to processors.

Multi-die devices can drive down production costs and improve performance and energy efficiency of chips for everything from high-performance servers to communications systems. The multi-die devices will take advantage of the Stratix 10 programmable chips that Intel is manufacturing for Altera with its 14-nanometer Tri-Gate process. Intel’s three-dimensional transistor architecture combined with Altera’s FPGA redundancy technology leads to Altera being able to create a highly dense and energy efficient programmable chip die that can offer better integration of components.

At the same time, Intel officials are looking for ways to make more cash from its manufacturing capabilities, including growing its foundry business by making chips for other vendors. CEO Brian Krzanich and other Intel executives have said they will manufacture third-party chips even if they are based on competing infrastructure, which is the case with Altera and its ARM-based chips.

Source