
BayFort Capital Global Equity Research
February 10, 2025 at 11:59 AM
BayFort Comments: In the unforgiving realm of technology, missing a single product cycle can be a fatal blow. Imagine the scene: 2006, Steve Jobs, brimming with revolutionary vision, approached Intel with an offer – the chance to power the very first iPhone. Paul Otellini, Intel's CEO at the time, famously declined. Why? Intel's internal projections screamed "unprofitable." Apple's proposed price, they argued, was simply too low. Otellini would later ruefully admit, "The forecasted cost was wrong."
But while Intel was busy miscalculating, Apple went on to sell a mind-boggling 2.3 billion iPhones. The consequences for Intel were, to put it mildly, brutal. They completely missed the explosive rise of the smartphone. As Apple's star ascended, so did the fortunes of companies like Samsung, TSMC, and ARM, who capitalized on the mobile revolution that Intel had shunned. Intel, once the undisputed titan of the tech world, watched their dominance crumble. Their market value plummeted, a stark reminder of the cost of a missed opportunity. From industry leader to a distant 69th place, Intel's story became a cautionary tale, a testament to the brutal reality of innovation and the devastating impact of a single, flawed "no."
