- Nov 14, 2011
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Is Intel's long game to exit the consumer market entirely, and move solely into high-margin servers and datacenter products? Intel has been consistently boosting investment in the datacenter and cutting back in the consumer market for years now. The consumer PC market is collapsing, and Intel has abandoned their attempt to break into its replacement (phones and tablets). Is the long term plan to abandon the low-margin consumer market to the ARM devices? Continue to slowly reduce investment in consumer parts, reap the (still very profitable!) long tail of sales, and use those profits to transition to a fully datacenter focused company.
If Intel gets their foundry business off the ground, I could see this being a viable strategy. Use ARM devices to fill their fabs and fund the R&D needed to remain a viable manufacturer, while keeping the high-margin datacenter stuff for themselves.
If Intel gets their foundry business off the ground, I could see this being a viable strategy. Use ARM devices to fill their fabs and fund the R&D needed to remain a viable manufacturer, while keeping the high-margin datacenter stuff for themselves.