Yet MediaTEK still has nearly a 3x mobile marketshare of Intel. Without gift wrapping with cash to use their chips. Profitable? Gaining marketshare? Putting up a fight against the big players?
Absolutely. This is without the luxury of the best fab processes available.
Scholzdpx
MediaTek is undeniably far more successful than Intel in the mobile market, and the company sports robust margins and profits from mobile chip sales.
However, you should understand that success in a market isn't about how much money you spent on R&D last year; technical success is often a combination of a robust, effectively utilized R&D budget over many years.
There's more to the story than just the R&D budget or even the efficiency of that budget; customer relationships and corporate culture are also key. MediaTek has been in phone chips for a while, and it has built many customer relationships. This means that the company not only can sell parts/platforms today, but it can gather the input of its customers to help define competitive next generation products.
Additionally, "success breeds success," if you will. If you build a competitive product today, then it's much more straightforward to deliver a competitive product tomorrow because you've got a good baseline to build off of.
Finally, the last note I have on MediaTek for now, is that MediaTek leverages TSMC's R&D investment in process technology + IP, and it also licenses IP from companies such as ARM and Imagination Technologies. This significantly lowers the cost of entry into the mobile market because a lot of that heavy lifting is already done for it by other companies.
Back to Intel: Intel's core competency is CPUs/SoCs for PCs and servers. In the mobile market, CPU/GPU capability is important, but good IP for both of those can be licensed. The mobile market (in particular phones) is very dependent on communications/connectivity technology as well as imaging, and time-to-market is a very important consideration.
The mobile companies like Qualcomm and MediaTek are very good at spinning many derivatives of chips quickly. Intel still needs to develop this capability, and it doesn't come overnight no matter how much money they pour into it into a given year. It's a marathon, not a sprint.
Finally, last note on Intel, the time it takes to go from the proverbial drawing board to shipping silicon is measured in
years and if you study Intel's R&D budget trend, you will notice that there was a marked step up in the 2011/2012 timeframe.
The products you are seeing from Intel now (Merrifield, Bay Trail, Cherry Trail, etc.) are all products of a much lower R&D budget from a company that is still trying to figure out its market. The R&D budget is now much higher, but the company still needs to learn its way around the mobile market.