Intel A Better Way To Grow

Which takes us to the mistake Intel made by focusing on “the numbers” when given the opportunity to build chips for the iPhone.  Intel was a very successful company, making key components for all Microsoft PCs (the famous WinTel [for Windows+Intel] platform) as well as the Macintosh.  So when Apple asked Intel to make new processors for its mobile iPhone, Intel’s leaders looked at the history of what it cost to make chips, and the most likely future volumes.  When told Apple’s price target, Intel’s leaders decided they would pass.  “The numbers” said it didn’t make sense.

The cost and volume estimates were wrong.  Intel made its assessments expecting PCs to remain strong indefinitely, and its costs and prices to remain consistent based on historical trends. Read more: Intel