Smart Buyer
  • Categories
    • Buying Guides
    • Components
    • DIY and How-to
    • Industry Trends
    • NetSec
    • Networking
    • Storage
    • Systems – PC & Laptop
    • Windows
  • About
  • Why NeweggBusiness?
  • Contact Us
Top Posts
5 Ways to Stream from PC to TV...
PC Cooling: How to Set up Computer Case...
2019 How-to Guide: Small Office Network Setup
2019 Solid State Drive (SSD) Buying Guide
How to Choose the Correct RAM Upgrade
Four Apps that Make Your Tablet a Second...
Wireless Router Running Hot? Cool It Down the...
How to Troubleshoot a PC Power Supply
Computer Monitor Buying Guide 2019
Born in the USA: Computer Hardware Made in...

Smart Buyer

  • Categories
    • Buying Guides
    • Components
    • DIY and How-to
    • Industry Trends
    • NetSec
    • Networking
    • Storage
    • Systems – PC & Laptop
    • Windows
  • About
  • Why NeweggBusiness?
  • Contact Us
Industry Trends

Why is Intel cutting jobs when they crush the desktop CPU market?

by Adam Lovinus April 28, 2016
by Adam Lovinus April 28, 2016 2 comments 1429 views

Reports that Intel is slashing 12,000 jobs—11 percent of its workforce—might surprise PC enthusiasts and someone like me who sells Intel desktop CPUs.

I associate Intel with the company that dominates (to put it lightly) the desktop CPU and server processor market. Our internal 2015 CPU sales rankings had all Intel Core i5s and Core i7s in the Top 10.

Well, to be fair, the AMD FX-6300 was in there once, but that was it.

So why all the problems at Intel?

One problem is a steady decline in use of PCs. The industry has been seeing PC sales decline every quarter since the Bush administration; desktop CPU revenues make up 60 percent of Intel sales, so that explains those losses.

On top of that, Intel is not competitive in the mobile processor market. Qualcomm and MediaTek own that space; Intel loses billions of dollars every year trying to build a smartphone processor it can sell.

In March, there were rumors of  an Apple iPhone 7 having an Intel Core M built into it, but more recent rumblings predict only a small percentage of new iPhones will have Intel in them.

Outside shot: Intel Core M Windows Phone

Some analysts think that Intel CPUs belong in Windows 10 phones, which are currently equipped with ARM-based Qualcomm CPUs. Experts say Windows Phones with Intel Core M chips are powerful enough to provide a fully-functional Windows 10 Continuum experience on the smartphone.

My gut instinct feels like success of an Intel Windows Phone is long shot; gaining market share by placing an unpopular mobile processor into an unpopular mobile device will require business alchemy to pull off.

Server CPUs and IoT hardware determine Intel’s future

Intel management is banking on the proliferation of cloud computing, and with it, demand for powerful server processors that run the data centers back on Earth. Sales of Intel server processors grew 8 percent this last quarter.

Another Intel long play is providing specialized hardware for the millions of Internet of Things devices supposedly arriving in the near future. That segment grew 22 percent for Intel, but details of this strategy have yet to be well articulated by leadership, and IoT group manager Doug Davis recently announced his retirement this year.

As the Intel Desktop PC market continues to shrink, the company’s growth depends on maintaining its IoT momentum, and establishing itself as the processor for the smart devices of the future. Time will tell.

Adam Lovinus

Adam Lovinus

A tech writer and Raspberry Pi enthusiast from Orange County, California.

More Posts - Website - Twitter - LinkedIn - Google Plus

Summary
Why are there so many Intel jobs cuts?
Article Name
Why are there so many Intel jobs cuts?
Description
Reports that Intel is slashing 12,000 jobs--11 percent of its workforce--might surprise PC enthusiasts and someone like myself who sells Intel desktop CPUs.
Author
Adam Lovinus
cpus processors
2 comments
0
FacebookTwitterGoogle +PinterestEmail
Adam Lovinus
Adam Lovinus

A tech writer and Raspberry Pi enthusiast from Orange County, California.

previous post
For Healthcare Technology Compliance, Don’t Overthink the Hardware
next post
Build a PC for Virtual Reality Content Development

Related Posts

6 Tips To Master the Marketplace during the...

November 7, 2019

Could a Flexible Office be Right for Your...

October 11, 2019

Future-Proof your Business: 5 Key Trends to Watch.

October 4, 2019

How Helium Drives Captured a Black Hole

September 20, 2019

AMD Epyc Processors Smash Records at Launch

August 8, 2019

Why the 3rd gen Ryzen processors are good...

July 11, 2019

4 Impactful Business Technologies Showcased at CES

January 17, 2019

Business Tech Trends as Told by 2018 Sales...

December 28, 2018

UPDATE: How Will Tariffs Affect Pricing for Computers...

December 3, 2018

What Is the 5-Year Outlook for Business Computers?

April 27, 2018

2 comments

Avatar
Doctor Noob April 20, 2016 - 6:00 am

more people are just buying tablets, phones, smart TV’s and consoles. I myself am an enthusiast. Instead of a console I use steam stream with a PC, instead of a roku I have a dedicated PC. I game but use Intel due to other hobbies like video editing, 3ds max and programming. Many business machines are switching to AMD due to cost difference. It truly has become a different world. However I do blame Intel for not getting more involved with mobile earlier. My phone should read Intel inside!

Reply
Adam Lovinus
Adam Lovinus April 20, 2016 - 8:58 am

Intel has been trying to break into the mobile market for a few years now. Qualcomm and ARM processors have it on lockdown, apparently.

Reply

What's your take? Cancel reply

Subscribe

  • 1

    5 Ways to Stream from PC to TV or Digital Display

    May 23, 2016
  • 2

    PC Cooling: How to Set up Computer Case Fans

    September 25, 2015
  • 3

    2019 How-to Guide: Small Office Network Setup

    December 20, 2018
  • 4

    2019 Solid State Drive (SSD) Buying Guide

    December 6, 2018
  • 5

    How to Choose the Correct RAM Upgrade

    April 28, 2015
  • 6

    Four Apps that Make Your Tablet a Second Monitor

    January 9, 2018
  • 7

    Wireless Router Running Hot? Cool It Down the Easy Way

    December 9, 2016
  • 8

    How to Troubleshoot a PC Power Supply

    July 11, 2018
  • 9

    Computer Monitor Buying Guide 2019

    January 4, 2019
  • 10

    Born in the USA: Computer Hardware Made in America

    September 27, 2018

Newegg + Business

How is this different from Newegg.com?

Why NeweggBusiness?
  • Facebook
  • Twitter
  • Instagram
  • Linkedin
  • Youtube
  • Email
  • RSS