Why ARM Has the Upper Hand Over Intel

Overall, a good piece. But one thing stands out. Read this quote by Andrew Dunn, an analyst at RBC Capital Markets: “We think Intel is more likely to have success in tablets, where power/performance constraints are less onerous than in handsets, owing to the proportionately larger battery.”

I agree. I do think that Intel is likely to have more success getting its chips inside tablets than it does phones — but that’s not saying much considering that Intel can’t get its chips inside phones to begin with.

One other thought: This entire article is based on the premise that Intel won’t become an ARM licensee and create ARM-based processors themselves. Intel already fabricates other companies’ ARM-based chips. The next logical step for the company is to design their own chips based on the ARM architecture. If Intel were to do this — and I believe they eventually will — not only would the company make more money than it currently does by simply building other companies’ ARM-based designs, but it would also no longer be Intel vs. ARM; both could succeed together.

Why ARM Has The Upper Hand Over Intel

Apple Bought Embark

Jessica Lessin, the former Wall Street Journal reporter, has the scoop:

Apple Inc. keeps snapping up mapping companies.

The latest: Embark Inc., a small Silicon Valley upstart that builds free transit apps to help smartphone users navigate public transportation.

Over the last few months, I’ve used Embark’s apps to navigate Boston, Philadelphia, and Washington D.C. I wasn’t misled even once.

Whatever Apple paid for Embark, it was money well spent.

[Via Jim Dalrymple.]

Apple Bought Embark

Apple’s Senate Testimony

The most interesting part is the part that hasn’t been covered:

Apple has always believed in the simple, not the complex. This is evident in the Company’s products and the way it conducts itself. In this spirit, Apple has recommended to the Obama Administration and several members of Congress — and suggests to the Subcommittee today — to pass legislation that dramatically simplifies the US corporate tax system. This comprehensive reform should:

  • Be revenue neutral;

  • Eliminate all corporate tax expenditures;

  • Lower corporate income tax rates; and

  • Implement a reasonable tax on foreign earnings that allows free movement of capital back to the US.

Apple recognizes these and other improvements in the US corporate tax system may increase the Company’s taxes. Apple is not opposed to such a result if it occurs in the context of an overall improvement in efficiency, flexibility and competitiveness. Apple believes the changes it proposes will stimulate the creation of American jobs, increase domestic investment and promote economic growth.

Did you catch that? Apple said it’s fine paying more in taxes so long as it’s the result of a complete overhaul of the corporate tax code.

That statement wasn’t in error. In his opening statement, Tim Cook said the same thing: 

Apple has always believed in the simple, not the complex. You can see it in our products and the way we conduct ourselves.

It is in this spirit that we recommend a dramatic simplification of the corporate tax code. This reform should be revenue neutral, eliminate all corporate tax expenditures, lower corporate income tax rates and implement a reasonable tax on foreign earnings that allows the free flow of capital back to the U.S. We make this recommendation with our eyes wide open, realizing this would likely increase Apple’s U.S. taxes. But we strongly believe such comprehensive reform would be fair to all taxpayers, would keep America globally competitive and would promote U.S. economic growth.

I can’t think of any other company that would say it’s willing to pay more in taxes. Can you?

Apple’s Senate Testimony

For U.S. Companies, Money ‘Offshore’ Means Manhattan

David Kocieniewski, reporting for The New York Times:

Like some of the nation’s prominent chief executives, Apple’s Timothy D. Cook has a simple proposal to help spur the economy and encourage corporate tax compliance: give American companies a tax break to bring to the United States untaxed profits parked overseas.


Apple is one of about 20 major corporations that have been pushing for a fresh tax break, known as a “repatriation holiday,” which would allow them to bring the money to the United States at a drastically reduced rate. John T. Chambers, chief executive of Cisco, has led a sustained lobbying effort for such a policy, promising that it would act as a stimulus to encourage investment and increase jobs in the United States.

Chambers may be lobbying for a repatriation holiday, but Cook isn’t. In his testimony on Tuesday, Cook made clear that he would like to see a complete overhaul of the corporate tax code — even if it resulted in Apple having to pay more in taxes — not a repatriation holiday.

Sloppy reporting.

For U.S. Companies, Money ‘Offshore’ Means Manhattan