“Apple and the Newton made the company exist,” said Mike Muller, one of the founders of ARM and its chief technology officer. “The Newton never went anywhere, but it got ARM started and gave us some credibility.”
Dealing with hand-held devices and cellphones forced ARM to operate under severe power restrictions. It chased milliwatts, while Intel chased horsepower.
Mr. East and other ARM executives point to the difference in the companies’ business models. Intel designs and manufactures its own PC and computer server products, commanding about $50 to $1,000 for each chip. ARM chips, by contrast, are made by a handful of contract chip manufacturers and cost 65 cents to $20 each. ARM earns pennies or fractions of a penny off each chip through its licensing deals.
Dealing with hand-held devices and cellphones forced ARM to operate under severe power restrictions. It chased milliwatts, while Intel chased horsepower.
Mr. East and other ARM executives point to the difference in the companies’ business models. Intel designs and manufactures its own PC and computer server products, commanding about $50 to $1,000 for each chip. ARM chips, by contrast, are made by a handful of contract chip manufacturers and cost 65 cents to $20 each. ARM earns pennies or fractions of a penny off each chip through its licensing deals.
tags: 10x, 3x3, evolution, environment, mobile, niche construction
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