Why does IBM use Intel as its chip maker

Discussion in 'Community' started by MacNut, Jan 3, 2004.

  1. macrumors Core

    MacNut

    Joined:
    Jan 4, 2002
    Location:
    CT
    #1
    Ive always wondered why if IBM is a chip maker why do they use Intel for their computers
     
  2. macrumors 65816

    tpjunkie

    Joined:
    Nov 24, 2002
    Location:
    NYC
    #2
    They make chips; just not the x86 chips which are used in some of their products. Other products they make do use their own chips like the POWER 4+
     
  3. thread starter macrumors Core

    MacNut

    Joined:
    Jan 4, 2002
    Location:
    CT
    #3
    Is there a reason IBM doesn't make x86 chips, With the resources that IBM has they could probably bury Intel and AMD combined
     
  4. macrumors 65816

    tpjunkie

    Joined:
    Nov 24, 2002
    Location:
    NYC
    #4
    Thats somewhat doubtful...they'd have to spend the money on R&D to put out a chip that was more efficient and/or cheaper than what is currently being offered, and then try to compete with intel for contracts to have the chips put into a large company's machines, like dell or hp, in order for the whole thing to even break even. Its probably just cheaper to do it they way they are.

    Also, it could be due to the fact that the x86 architecture's future scalability is a little less impressive than the power pc, which is a chip that was developed by IBM, as opposed to Intel's x86
     
  5. macrumors G5

    Sun Baked

    Joined:
    May 19, 2002
    #5
    IBM got out of the brutal PC business, the low end PC was just too ugly -- people willing to lose money to gain market share.

    Hoping to goose the stock price, while bleeding cash in the end. Remember eMachines and a few of the other low end PC computer maker corpses?

    The x86 business would become just as bad if IBM decided to go head-to-head with Intel. If Intel lost enough market share, they would burn cash to pick it back up.

    MS has been doing this for years, give away HW and SF for next to nothing and picking profit up in the tail end when people upgrade -- or they kill the attack on market share.

    ---

    IBM support of x86 was to pick up the market that wanted it, and to keep those customers using IBM Servers and Iron.

    If enough people shift to an all new Gateway CPU, IBM would support it.
     
  6. macrumors 6502a

    manitoubalck

    Joined:
    Jul 17, 2003
    Location:
    Adelaide, Australia
    #6
    But they did

    Many moons ago they had a line of x86 chips, if I remember correctly, the year was ~1997 and the Cyrix chips were avaliable?
     

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  7. Moderator emeritus

    Joined:
    Jun 25, 2002
    Location:
    Gone but not forgotten.
    #7
    Re: But they did

    Yes, IBM Microelectronics produced the M2 for Cyrix and also a couple of variations of it for themselves. That may have been 1998, as the Pentium II and Athlon were arriving too.

    IBM is not about commodities. They're about covering all levels of an enterprise. While they'll sell to individuals, they'd rather sell to accounts which already have their big machines and just wish to connect to them. The Power series of processors covers most of their machines now except the PCs. The PowerPC series covers some smaller UNIX workstations and their communications equipment.
     
  8. macrumors G5

    Sun Baked

    Joined:
    May 19, 2002
    #8
    Re: But they did

    I didn't realized IBM owned Cyrix...

    If IBM switches to AMD processors they are producing at an IBM FAB it still won't make them IBM chips.

    Unless of course, you're saying it will.
     

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