Intel Dropped out of the integrated graphics business

[apoppin]

First i heard . . . not a repost i hope

here's the article [EXcerpted, of course]: Why Intel dropped out of the integrated graphics business

THE MOST spectacular and surprising thing that took place in 2005 is definitely Intel's decision to drop out of the entry level 915G chipset businesses. We heard some juicy details so we kind of know what was going on and what led to that decision.

OK, we have to give Apple credit for announcing its support for Intel chips as well, but graphic wise this is the most important story of the year. When it comes to money, this means that some companies are going to boost significantly and Intel won't lose much because of its decision.

. . .

The second key point was the i915G's lack of support for all of the future Longhorn?Vista Aeroglass desktop interface. Intel 915G and its GMA 900 could not get Microsoft's imprimatur on it. . . .

. . . . We expect that Intel plans to return in the next year or two, and we suspect that it plans to do so big time.

Remember, Intel is a big player with more than fifty per cent of overall graphic shipments, so when such a company decided to drop out of the market segment it completely chances the balances.

Last, but certainly not the least, was the fact that the profit margins in chipset market are incredibly low. We learned that sometimes we are talking about less then a dollar, and sometimes even less then a dime. Some companies are actually making a loss on integrated chipset just to be there . . .

comments?

 

[5150Joker]

This gives ATi and nVidia some breathing room to hurry up and gobble up that 50% market share before Intel comes steam rolling back into the fray. Would be pretty crappy if Intel's return in a "big way" is the buy out of ATi or nVidia (if that's even possible). Either way this could be a good thing for the gaming industry since nVidia and ATi can now take the initiative and put up-to-date integrated chips on motherboards - though with the low margins who knows if that would happen.

 

[Corporate Thug]

its a mad dash to see who will gobble up intels abandoned market share! it could mean good things for nvidia or ati shareholders

 

[SickBeast]

They say that ATI is in the best position to benefit from this because nVidia does not have a current P4 chipset capable of competing w/ ATI.

Are the current IGPs from nVidia/ATI even Vista compliant?

 

[GTaudiophile]

ATI already got their business.

http://www.theinquirer.net/?article=26658

 

[hans030390]

intel got pwned? lol

 

[swatX]

wtf? why would intel just drop out like that? there is soo much money involved in this market!

 

[SickBeast]

Originally posted by: swatX
wtf? why would intel just drop out like that? there is soo much money involved in this market!

They can't do it! They don't have teh technology!

They say that Vista will have some crazy visual stuff that will require an advanced GPU. Intel's GPUs are by no means advanced.

 

[apoppin]

Originally posted by: GTaudiophile
ATI already got their business.

http://www.theinquirer.net/?article=26658

So overnight ATI is becoming the largest integrated chipset player, and this is definitely a great thing for this business unit. Nvidia did expect that ATI will become a serious chipset player at some point but it didn?t expect that it will take most of its integrated business at one stroke. Nvidia stalled on Intel chipset side and it is now paying the price for that.

ATI, on the nother hand, is pumping out hundreds of thousands of chipsets and these numbers are soon to reach the millions, as there is a huge demand for low cost integrated stuff. As soon as Intel drops out with 915, the only choice you will have are Xpress 200 and some Via and SIS boards. Nvidia's C60, possibly named Geforce 6150 for Intel is coming out later at a time still to be announced.

End of ATI? . . . i think NOT

 

[apoppin]

Originally posted by: swatX
wtf? why would intel just drop out like that? there is soo much money involved in this market!

evidently not "that" much money as the margins are quite low - from the Inq's article:

Last, but certainly not the least, was the fact that the profit margins in chipset market are incredibly low. We learned that sometimes we are talking about less then a dollar, and sometimes even less then a dime. Some companies are actually making a loss on integrated chipset just to be there and just in order to be able to get some money our of that business on a long terms. So Intel was not that generous after all, as it will leave a bitter piece of bread to all of its followers.

still it's MILLIONS of chipsets
:Q

 

[5150Joker]

Originally posted by: apoppin

Originally posted by: GTaudiophile
ATI already got their business.

http://www.theinquirer.net/?article=26658

So overnight ATI is becoming the largest integrated chipset player, and this is definitely a great thing for this business unit. Nvidia did expect that ATI will become a serious chipset player at some point but it didn?t expect that it will take most of its integrated business at one stroke. Nvidia stalled on Intel chipset side and it is now paying the price for that.

ATI, on the nother hand, is pumping out hundreds of thousands of chipsets and these numbers are soon to reach the millions, as there is a huge demand for low cost integrated stuff. As soon as Intel drops out with 915, the only choice you will have are Xpress 200 and some Via and SIS boards. Nvidia's C60, possibly named Geforce 6150 for Intel is coming out later at a time still to be announced.

End of ATI? . . . i think NOT

Well the article mentions the margins on chipsets is RAZOR thin so even if ATi commands most of Intels chipset market right now, it won't be making much or may be taking a loss.

 

[Kalessian]

Originally posted by: SickBeast

Originally posted by: swatX
wtf? why would intel just drop out like that? there is soo much money involved in this market!

They can't do it! They don't have teh technology!

They say that Vista will have some crazy visual stuff that will require an advanced GPU. Intel's GPUs are by no means advanced.

Well, according to the article, Intel already has the Vista compliant 950.

That's not the point. Intel doesn't want to continue to ship products that will not pass the Vista specs (Dell can't claim "Vista Ready!").

They are also not ready to ship all of their new stuff which uses their Vista-capable stuff. With about a 1-2 gap in their roadmaps thanks to Microsoft, their wisest choice is to cut a deal instead of lose the market in actual competition.

 

[apoppin]

Originally posted by: 5150Joker

Originally posted by: apoppin

Originally posted by: GTaudiophile
ATI already got their business.

http://www.theinquirer.net/?article=26658

So overnight ATI is becoming the largest integrated chipset player, and this is definitely a great thing for this business unit. Nvidia did expect that ATI will become a serious chipset player at some point but it didn?t expect that it will take most of its integrated business at one stroke. Nvidia stalled on Intel chipset side and it is now paying the price for that.

ATI, on the nother hand, is pumping out hundreds of thousands of chipsets and these numbers are soon to reach the millions, as there is a huge demand for low cost integrated stuff. As soon as Intel drops out with 915, the only choice you will have are Xpress 200 and some Via and SIS boards. Nvidia's C60, possibly named Geforce 6150 for Intel is coming out later at a time still to be announced.

End of ATI? . . . i think NOT

Well the article mentions the margins on chipsets is RAZOR thin so even if ATi commands most of Intels chipset market right now, it won't be making much or may be taking a loss.

from the Inq:

The margins are not great in the integrated chipset business but we are sure that ATI might earn some of it, otherwise it would not make much sence just to be there and make the losses. When I think about it, it happened before but you can earn some cents if not dollars if you do the job right.

MILLIONS of Chipsets - withOUT Intel.

that's the difference . . . i predict with THE major competitor OUT, the margins just got fatter.

 

[apoppin]

up for the morning shift . . . this really is BIG news . . . [with r520 a day away]

 

[KristopherKubicki]

I usually don't comment on Inq articles. Fcuk it though...

Intel discontinued an older 915 GMA900 chipset. They have 945 GMA950 chipsets. They are going to have Broadwater based GMA boards. In fact, Intel is even putting GMA on their high end boards. Please tell me where Intel decided to " drop out of the market segment". They EOL'ed a first generation, two year old chipset that stopped production over a year ago anyway.

From the fine roadmap:

Broadwater G3
1066/800/533 FSB
Dual DDR2-800/667/533
Intel® GMA Graphics
w/ Dual Independent
Display
Intel® AMT
Stable Image
Technology

Kristopher

 

[Hacp]

Originally posted by: KristopherKubicki
I usually don't comment on Inq articles. Fcuk it though...

Intel discontinued an older 915 GMA900 chipset. They have 945 GMA950 chipsets. They are going to have Broadwater based GMA boards. In fact, Intel is even putting GMA on their high end boards. Please tell me where Intel decided to " drop out of the market segment". They EOL'ed a first generation, two year old chipset that stopped production over a year ago anyway.

From the fine roadmap:

Broadwater G3
1066/800/533 FSB
Dual DDR2-800/667/533
Intel® GMA Graphics
w/ Dual Independent
Display
Intel® AMT
Stable Image
Technology

Kristopher

Hmm even you cant say the four letter f word. Thought you had at least some power on the boards .

 

[apoppin]

Originally posted by: KristopherKubicki
I usually don't comment on Inq articles. Fcuk it though...

Intel discontinued an older 915 GMA900 chipset. They have 945 GMA950 chipsets. They are going to have Broadwater based GMA boards. In fact, Intel is even putting GMA on their high end boards. Please tell me where Intel decided to " drop out of the market segment". They EOL'ed a first generation, two year old chipset that stopped production over a year ago anyway.

From the fine roadmap:

Broadwater G3
1066/800/533 FSB
Dual DDR2-800/667/533
Intel® GMA Graphics
w/ Dual Independent
Display
Intel® AMT
Stable Image
Technology

Kristopher

Thank-you!

this Inq article came as a 'bolt outta the blue' for me . . .

 

[apoppin]

i dunno now Kristopher . . .

ATI strikes deal with Intel, delivers Xpress 200 IGP for Intel boards

Intel now has decided to use the Intel edition of the chipset for entry level boards, most likely upgrading the 845/865 AGP-based boards as well as supporting 915GL PCI Express boards. In either case, Intel will integrate the Xpress 200 in an Intel-branded, entry-level board.

still a big deal, i think

 

[apoppin]

TheInq follows up

INTEL insists that it is in the 915G market for the long term, despite this story.

According to roadmaps seen by the INQ, and for that matter other web publications too, Intel is in there for the long term, it insists.

It is true that Intel still makes the i915G chipset, and of that there is no doubt. The firm refuses to comment on unannounced products or when products will stop being products, so that puts us hacks in something of a Catch 22 situation.

Intel's internal documents that we've seen show 915G at the IGP side of the roadmap but it suggests as well that Intel will drop out of making 915G in Q4 2005.

We have already independently confirmed that ATI has sold many of its chipsets to Intel, some weeks ago.

And so, as Intel can't comment on unannounced products or products that will be unannounced, this leaves the matter between the two horns of a dilemma