Mobile is the only business besides PCs where actual SoCs get a lot of visibility in the eyes of the end customer. Does Joe Doe care what’s inside his MP3 player or car infotainment system? No, not as long as it’s doing its job. But when it comes to his smartphone or a tablet, his awareness of the chip inside is much higher.
It’s good for the business, because this awareness helps IP providers promote solutions that are little marvels of engineering and take time to develop. It keeps the business going, as we know the customers will ask for a next-gen solution in no more than a year. This drives revenue growth, because nothing is worth more than a slight competitive edge that secures a big win in the market.
It’s also bad for the business, because only a few companies can keep up with the pace of this race. Also, the money involved is high, so you want to place your bets carefully. And last but not least, you’re developing technology that is silicon-proven by you and is production-proven also by you – this pressure does not help either.
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