The OEM problem We expect the customer <--> OEM <--> chip vendor relationship to be: customer buys computer from store stores buy computer from OEM OEM buys chips from chip companies But OEM have way more power today! Situation is more like: customer buys computer from store stores buy computer from very few OEMs OEM switches from chip vendor to chip vendor as it wants ... but chip vendors live and die based on VOLUME OF DEMAND Making 1 million chips is very expensive Making 10 million chips is much cheaper In essence OEM's "pay" their chip vendors by bringing them customers