Intel Does Not Need PCs For Growth

Megalith

Megalith

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The PC market may be shrinking, but Intel isn’t sweating.

Chief Executive Officer Brian Krzanich told analysts that Intel’s growth was not dependent on its PC business. Intel is facing a weaker PC market and said that its revenue has been bolstered by demand for high-powered processors that run servers, the building blocks of cloud-computing centers. Additionally, orders for memory chips and processors used in new markets for Intel -- such as automotive and factory automation -- are helping to boost sales, the CEO said.
 
The PC market hasn't been the focus for Intel in a long time. They are all about shrinking their old tech to fit into smaller devices such as mobile.
 
PC today is more geared towards gamer or business/productivity. Business enterprise do not upgrade their system frequently, and even the gaming community do not have the need for frequent upgrade these days. Only a small group of enthusiast would get the greatest CPU for the sake of it, while most gamer are more than happy to stick to what they have as long as it can run the games they play.

So it's not surprising that PC market isn't a huge source of revenue these days. I believe even AMD and nVidia will have to look beyond PC to sustain their revenue. They need to go into other industries such as automotive or any that requires performance SoC.
 
081511_rg_TinyDollHousePC_01.jpg
 
Intel is a hugely diverse company and owns many patents for many things that we take for granted in normal usage of electronic devices. They make a lot of money off of royalties.

Also don't forget they are in joint venture with Micron under the IMFT company banner and sell tons of flash memory which goes in damn near everything now-a-days.

And the problem (for everyone else) is that in this business it takes money to make money....and Intel makes the most amount of money, which means they have the capital to invest and find ways to make even more money. So while most companies are getting by, Intel just keeps moving further and further ahead.

Good luck slaying that beast.....
 
westrock2000 said:
Intel is a hugely diverse company and owns many patents for many things that we take for granted in normal usage of electronic devices. They make a lot of money off of royalties.

Also don't forget they are in joint venture with Micron under the IMFT company banner and sell tons of flash memory which goes in damn near everything now-a-days.

And the problem (for everyone else) is that in this business it takes money to make money....and Intel makes the most amount of money, which means they have the capital to invest and find ways to make even more money. So while most companies are getting by, Intel just keeps moving further and further ahead.

Good luck slaying that beast.....
Click to expand...

The same could be said for once the mighty Motorola :eek:
 
caddys83 said:
The same could be said for once the mighty Motorola :eek:
Click to expand...

I don't think we need to worry about Intel becoming another Moto ... Intel is likely to remain dominant in the server market for some time (I don't see AMD bumping Intel out like they did with the PC chips in the early 2000's before Intel recovered with the Core products), and the major advantage of the Server market is that it supports the growth in PC, Internet, and mobile

Also, it is hard to tell what Intel might decide to do if they have excess capacity ... they could certainly go into the Fab 3rd party market and compete with companies like TSMC (if they wanted) ... Intel is far more nimble than Moto ever was
 
The need for big data is where Intel is putting all of their money into. They have decent amounts of R&D but they pretty much concentrated on the server market and decimated both IBM and AMD.
 
I wonder how long before Intel caves in and starts making ARM processors in volume again. Intel already owns ZiiLabs, but that company doesn't seem to be doing anything with modern ARM cores since Intel purchased it 3 years ago.
 
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