Intel to Drop Low-end Chipsets
SimilarityEngine writes "Intel is planning to terminate production of its 910GL, 915GL and 915PL chipsets by the end of August, as part of a shift in focus towards higher-spec products, possibly with support for new FSB architectures, multi-core processors and a host of other much-requested features relating to virtualisation and security."
In the 90s the American carmakers got out of the low-marign car business, and moved with all their gusto to the high margin trucks and SUVs.
This was a disaster, and only now are the chickens coming home to roost. Already Chrysler is history, and we are all just wondering whether Ford or GM will be next to go. And now the Germans, Japanese and Koreans compete with them in the high end -- there is nowhere else to go. I guess cars like the Maybach are even higher margin, but the Americans can't economically build it (nor something like a Lamborghini).
So Intel better be makign some new, super-breakthrough stuff, that the other guys just don't have at all -- or the current high-margin business will become medium and then low-margin; at which point VIA will eat them alive.
Japanese companies understand that you need to keep on making stuff, even low margin stuff, if only to stop the other folks from entering your citatdel and killing you one day. A bit like Cisco making cheapo stuff (Linksys) to keep the wolves at bay. You've got to get through Linksys before you can attack Cisco.
http://www.thebricktestament.com/the_law/when_to_