Intel Announces Major Reorg To Combine Mobile and PC Divisions
MojoKid writes: For the past year, Intel has pursued what's known as a "contra-revenue" strategy in its mobile division, where product is deliberately sold at a loss to win market share and compete effectively. This has led to a huge rise in tablet shipments, but heavy losses inside Intel's mobile division. Today, the company announced that it would take steps to fold its mobile and conventional processors into a single operating division. While this helps shield the mobile segment from poor short-term results, it also reflects the reality that computing is something users now do across a wide range of devices and multiple operating systems. Intel may not have hit anything like the mobile targets it set out years ago, but long-term success in laptops, tablets, and smartphones remains integral to the company's finances. Desktops and conventional laptops are just one way people compute today and Intel needs to make certain it has a robust long-term presence in every major computing market.
where product is deliberately sold at a loss to win market share and compete effectively
Isn't that also called dumping?
Seems like they want to conceal how well/poorly they are doing in the mobile sector. Makes a certain amount of sense most people see the mobile market as the hot new future.
Phones, tablets, laptops, all is mobile. The days of tower rigs are over.
Given the fairly lame update to the Mac Mini caused mainly by the lack of choices in Intel's mobile CPU offerings (and Apple's refusal to design and stock a separate motherboard just for quad core), I'm wondering just what would it take for Apple to make yet another CPU transition. They must hate being dependent on the release schedules of Intel for when it comes to putting out Macs, and the A8X is nearly the performance of a couple years ago MacBook Air.
This is Intel basically admitting defeat in the mobile space. It's good they don't feel so cocky anymore. Competition is good for everyone.
Been used effectively for years.
Intel is the world leader when it comes to silicon advancement, there's no doubt of that. Their quite real and appropriately named 14nm process starts shipping incredibly soon, and TSMC/Global Foundries, now seemingly their only competition, don't even hope to have their inappropriately named "16nm" process shipping in products for two years out, a process not actually much to any denser than the just now shipping TSMC 20nm process.
Intel's Core technology is also excellent in terms of silicon to performance. The problem comes in at the cost of that world leading silicon. TSMC has concentrated on costs, and while 20nm process might be a day late and a few dollars short in terms of performance and density, in terms of cost TSMC can make a profit at the same price Intel can produce chips at, let alone sell them.
And with mobile products being relatively cheap, and their prices coming down for the most part, its that profit at a low cost to consumers and high volume that's selling. Intels Atom products are actually perfectly competitive for performance. They just cost Intel too much to produce at their super fancy fabs and that just have to be cutting edge instead of cost efficient.
Yea yea, my tower rig completely agrees, and need a new graphics card real soon. Maybe a new motherboard also, and a new SSD or two after that. I'm gonna name him "zombie" and call him undead liberator of carrying useless stuff with me to places where I would not use it anyways.
Because a chip that extends battery life is EXACTLY what I needed for my desktop PC!
Isn't that also called dumping?
Strictly speaking no it is not dumping. Dumping is the act of charging less in a foreign market than you charge in your domestic market. That isn't what Intel is doing. What Intel is doing might be considered a form of predatory pricing but it isn't dumping. All dumping is predatory pricing but not all predatory pricing is dumping.
Surely using their market power in one segment to sell at a loss in a different segment is anti-competitive.
SURELY NOT!!!!!
Intel needs to get behind an organized effort to bring us a business-grade mobile device. That's the only low hanging fruit left. Take the following excerpt I pulled from an article:
Let's rewind to 2007. RIM owns the mobile space for business, while consumer devices are primarily "dumb phones". In comes Apple, flush with iPod money, and looking for the next evolution of it's highly profitable device. The solution is simple: why carry an iPod and a phone? Thus, the iPhone is born.
In a single generation the iPhone brings massive innovation to the market. The device is targeted at Apple's primary demographic: the consumer, but the features are so beyond what is currently available that this type of smartphone doesn't take long to become a favorite in the business commnuity as well.
The large touch screen destroys the conventional track ball/pad, allowing the user to display more text, and use multi-touch to navigate more efficiently. The full webkit browser completely destroys the WAP-based dinosaurs giving the user a desktop grade browser at their finger tips. The user can carry all forms of media with them and display it at their whim. And, finally, and most importantly, the design of the operating system is centered around a robust API which doesn't take long to bloom into a wealth of independent applications that let the user do things they never before thought possible.
The response at RIM is unforunately short-sighted. RIM sees the device as a "toy". It sees it as a consumer-grade flash in the pan that will eventually collapse in the face of the established security and familiarity of their Enterprise Server platform, and BBM. RIM does opt to borrow some of the innovations - like the touch screen - and implement it their own, poorly advised ways but, ultimately, things at RIM continue as usual.
Now let's fast forward to 2013. The market has spoken. Blackberry market share is down to single digits and the company needs to do something quick to turn things around. They've been working for years on something that is supposed to change our lives and we're finally going to get to see it. What they unveil is astonishing: a consumer-targeted device.
The playing field in consumer-grade devices is now beyond saturated. We've had Google, Apple, and even Microsoft all battling each-other for the last 5 years. Innovation year-over-year is staggering. Why blackberry decided to try to compete in this market is baffling. What's worse, is they released an inferior product, on their own independent platform, that - of course - is going to gather no developer support in an already saturated market.
So here we are, 2014 and - still - no business-grade device in the mobile market. We have a dizzying amount of consumer-grade choice, but nothing properly designed with business in mind. In response I would like to say the following to the entire tech community involved in mobile device development:
We're here. We have money. We have a lot more money than all these teenage kids. Please, please, I want to spend it. Someone give me a business-grade mobile phone and tablet. Important things to me are: checking my email, security, centralized device management, and integration with existing business technologies. Reward: see Microsoft's stock price in the 90's.
If it ain't broke, don't fix it.
Want to know the difference between the 3rd gen Pentium mobile CPU and the 4th gen? The 4th gen is half the speed. I am not kidding. Its passmark rating is under 1000! Wow, now my Satellite can get 10 hours of battery life and it only takes TWICE AS LONG TO DO EVERYTHING. They turned the damn thing into a tablet/smartphone. Its average system operating wattage is 11 watts.
What's AMD up to? Their latest release was a 220 watt desktop CPU that makes the fastest i7 look like crap. Their mobile offerings are poor, although their APUs are typically a better option overall than a dedicated Nvidia GPU plus a fast intel processor but who cares? I know laptops are outselling desktops but I don't think that trend is permanent. Everyone is dropping, overheating, and frying the battery on the computer that they run their whole life on then going back to a desktop. Trust me, I run a custom computer and repair shop and that's what I'm seeing. Intel just shot themselves in the foot.
If you lower your prices below market, you lose some revenue on every unit shipped but you could potentially ship a lot more, so it's not clear that the (old) strategy is "contra revenues".
Like, totes obvi.
So does this mean they will be releasing a processor that runs applications equally as poor on mobile and desktop? They will probably straighten in out in Intel i8.1 or just skip to i10 where they re-introduce the PCI bus bridge they disabled in i8.
When it comes to building a compact PC, it's pretty hard to say they should have standardized on a socket which is only useable for 47W parts, versus a socket that supports parts which center around 15W. Are you actually saying that they should have designed a Mini with a 47W CPU? For home theatres and light server use? I happen to love the low energy use of the Mac Mini; I can't buy one for desktop use as I need the quad core for Xcode development, but I respect the idea of making a quiet, low energy general purpose computer.