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I said this here a while ago. Intel had only 2 options, and they are both bad for them: 1) keep going up market, and be disrupted in the most classical way pos
by devx 13y ago
I said this here a while ago. Intel had only 2 options, and they are both bad for them:
1) keep going up market, and be disrupted in the most classical way possible
2) compete with ARM on price, which is unsustainable for a company like Intel
Not only is Intel used to high margins on its chips, but it's also a very small player in the mobile world, and the PC world is shrinking continuously, so "making it up" in the PC market won't cut it.
Also, if they're promoting "$300 Haswell notebooks", virtually nobody will buy $700-$1000 notebooks in the future, and Intel will never be able to raise prices, and their profits, again.
Whether Intel will die like Blackberry and Nokia (yes, I consider the acquisition as dying, since it was a move out of bankruptcy desperation) or will survive as a tiny shadow of what they used to be, I'm unsure.
I suppose it's possible for them to survive as a company that is 1/10 of what they used to be, if they really compete on price, and make radical changes within the company (end all unprofitable/low volume divisions and fire execs or engineers that are too expensive). But that really depends on how willing they are to make those hard decisions.
- kryptiskt 13y ago> Not only is Intel used to high margins on its chips, but it's also a very small player in the mobile world, and the PC world is shrinking continuously, so "making it up" in the PC market won't cut it. Your world seems to be missing servers.
- 6ren 13y agoThey are also fab leaders, at 22nm while everyone else is at 32nm. So, e.g. they could manufacture ARMs, and command a premium (say, for apple, leapfrogging them 2 years ahead of the competition). The striking thing is that, per Hz, x86 is still far more powerful than ARM (like, integer factors, I've heard x5). If they can get the power consumption low enough and/or more performance is needed in phones/tablets, they could possibly win (though it seems unlikely). Their best bet is to lead the next disruptive category - watches or glasses or whatever it is - but unfortunately their bias towards performance over power consumption doesn't bode well for them.