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While the Intel laptop CPUs may have been not good enough, that is not where Intel has lost money. The current financial results have shown decent profits for
by adrian_b 2y ago
While the Intel laptop CPUs may have been not good enough, that is not where Intel has lost money.
The current financial results have shown decent profits for the consumer CPUs, which could have been greater if Intel had succeeded to produce more Meteor Lake CPUs. Intel could not produce as many Meteor Lake CPUs as the demand because their new Intel 4 manufacturing process has low production yields.
While Intel lost money in their foundry, that was unavoidable due to the high expenses needed for catching up with TSMC.
Where Intel had great losses was in server CPUs. The reason for these losses must have been that Intel had to grant very large discounts to the big buyers of server CPUs, in order to convince them to not buy superior AMD server CPUs.
These losses in server CPUs were easily predictable, because even if Intel has succeeded to reach in time all the publicly announced milestones of their roadmap, their roadmap itself does not hope to reach parity with the AMD server CPUs before H2 2025 (and that assuming that AMD will not introduce Zen 6 during 2025, which would move the target).
It looks like Intel has made a PR mistake. Even if their public roadmap has shown all the time that they will continue to have big losses for at least one more year, that was obvious only for technical people, who could compare the future Intel products with the AMD products, because Intel has not said any word in their roadmap about what the competition will have at the same time. For non-technical people, the Intel press releases sounded more optimistic than they should have been, leading to disappointment caused by financial results that should not have been surprising.
- Tuna-Fish 2y ago> The current financial results have shown decent profits for the consumer CPUs, Only after serious financial alchemy. The client group has a decent op margin, but the foundry group has an absolutely terrible one, and the client group sells products that they buy (internally) from the foundry group at arbitrarily set prices. What would the client margins be if the internal price they pay for their products was set so that the foundry breaks even?
- walterbell 2y agoAre client margins different for Lunar Lake, where the compute/platform tiles are made by TSMC?
- formerly_proven 2y agoiirc the reason for that split in margins is precisely because Intel started pricing their foundry internally as-if they were external sales (i.e. made at competitive prices).