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Actually in a relative sense the pandemic clearly helps Intel. Their problem right now is that they have an inferior process and their high margin datacenter p
by newacct583 6y ago
Actually in a relative sense the pandemic clearly helps Intel.
Their problem right now is that they have an inferior process and their high margin datacenter parts[1] are in critical danger of facing competition from devices fabbed by TSMC and (to a lesser extent) Samsung.
Their offerings in the market now, though, are still winning and Intel is making a ton of money.
So the net effect of a downturn is that the future market, the one where AMD is competetive and Intel needs to drop prices, is going to shrink in total dollars. That's a win for Intel, comparatively. It means the window into which AMD could have jumped to steal revenue is smaller, and Intel has more time to catch up.
[1] Remember that most of the money in the CPU industry is made in the datacenter. AMD having better desktop parts doesn't affect Intel's bottom line much as long as they remain competitive in servers. (AMD still lags with laptop devices too, which are also a bigger market than desktops).
- kolbe 6y agoWhy wouldn't data centers switch when they can get more computing power for less energy and at a lower initial price point? That's happening now with the current offerings.
- newacct583 6y ago> Why wouldn't data centers switch when they can get more computing power for less energy and at a lower initial price point? Uh... because their revenues are down 20%, they have a hiring freeze, and are delaying all capital expenditures? That was my point: there may be technical reasons for people to move away from Intel's products. But the economic reality means that fewer customers will.