All the main reason behind why Qualcomm failed on the market of data center chips are being pinpointed in this article. Found it to be a truthful observation. The question that remains is will Qualcomm get out of this market for good, or does it plan to keep this business “hanging by a string”?
https://www.fool.com/investing/2018/12/21/4-reasons-qualcomms-data-center-business-failed.aspx
Harsh Truth: Qualcomm has NEVER been able to catch the lightning in a bottle a second time. They have been skating on the genius of Irwin and the founders for 30 years, all the whole throwing ideas against the wall hoping they will stick. Nothing has stuck. They would be further along if they had kept the company small and focused on endlessly milking the same old tired cow.
As I said when Data Center started, it would take years to break into, and Qualcomm simply lack the staying power. This is compounded by the numerous times Qualcomm told customers they would stay with a product, then quit. There was no trust that Q would support the chips long term, so early adapters were largely uninterested.
The sad thing is this was a viable product, if Q actually committed to the time and money it would take to break into the market.
What's hilarious is if you visit the Intel board, they're convinced that the company is doomed, leaderless company that can't do technology anymore and they'll be shutting their doors in five years tops.
-vmu Yes, and that’s the arrogance part of the equation. Thinking they could dent that monopoly. Chance favors the bold, sure, but they clearly didn’t do the math. That’s not world class leadership.
It doesn't help that the competition had a three decade head start.
The company is waiting for the court verdits in the Apple case; then action will be taken to dismember, cut up and sell of the various $ losing bits. By 2020 it'll be an HQ and a sweatshop in India churning out the same tired old MSMs aka Snapdragons.
Profit over people. This is the CFO’s corrosive influence on this once solid company. So many mistakes listed here, and these are only the recent mistakes related to the server business. Arrogance, greed, ineptitude. Could I have done better? Probably not, but one thing I know is that these C-level tools are NOT the right guys to be making these decisions. Also, I wouldn’t have laid people off right before the holidays just to make the numbers add up. Bottom line: If the board doesn’t act on this, they are part of the problem. Either way, it is inevitable that this company will be sold, dismembered and forgotten. By the end of 2019, this will be a clear trajectory.