Intel Consumer PC Business Struggles, PC On A Stick Review Program Stopped
According to Intel executives the processor Company, who is struggling to get consumers passionate about their technology there are problems with the current model PC on a stick with Intel engineers forced to deliver a software fix.
Several commentators have said that the Intel era is over and that the PC on a stick exercise was really a PR gimmick to stimulate interest in the Intel brand.
The reality for Intel is that many of today’s tablet, and smartphone buyers won’t even remember the “Intel Inside” campaign from the nineties?
While consumers of the nineties, who were primarily technology dyslexic did want Intel Inside, because they knew no better, consumers today don’t give a stuff about the processor inside their mobile devices.
Today is more about “Apple on the Outside,” than “Intel on the Inside.”
In Australia Intel has slashed staff numbers as PC Companies struggled to sell their processors to consumers who are more interested in a new smartphone or tablet than a new product with an Intel processor.
Recently Apple cuddled up to Samsung in the smartphone processor market, this is a market that has eluded Intel with most smartphone manufacturers sidestepping Intel advances.
Right now Intel is punting on their new Bay Trail Atom-based system-on-a-chip offering in an effort to deliver processors that use less power than prior energy sucking Intel processors.
Faster than any ARM product on the market, the problem for these processors is they’re still based around an x86 architecture, which means they can be used by what, Windows? Linux? Mac OS X?
Samsung and Intel dominate in the tablet and smartphone market with tens of millions of their products being sold annually. Not one of these products run on Intel processors.
One has to ask the question why would a mobile device maker choose an Intel platform over ARM and it is device makers who Intel are dependent on to drive Intel sales.
More importantly, why would a consumer? The only people who care about Intel are IT Pros, and they are no longer in charge of what devices their users use.
In Australia people do not arrive at a meeting anymore with a big clunky “Intel Inside” PC, they have tablets.
What Intel is banking on is that consumers will gravitate back to two in one PC’s that do have an Intel processor inside but the problem is that core Intel customers, Dell, HP, Acer, Asus, Toshiba and Lenovo are struggling when it comes to the tablet market.
Then there is the fast emerging smartwatch market, Intel has already bombed out in this space with little hope that they have the capacity to be a player in the future.
One Intel follower recently described the Intel Corporation as a whale in the drying sea of desktop and notebook systems.
Intel shares are down more than 20% in the last twelve months despite the Company having the lion’s share of the PC processor market.
Last month Intel admitted that operating income for its client computing group fell 24% in the first quarter, while revenue declined 8.3%.
That newly formed segment rolled up PC chips with those for tablets and smartphones, a previously separate unit that had recorded heavy operating losses as Intel used subsidies to build market share.
The market for mobile computing chips has expanded rapidly since the introduction of the iPhone in 2007.
The ubiquity of smart phones, and the introduction of tablets, has propelled that growth forward.
Intel has not kept up, and this is beginning to put a strain on investor confidence.
Back in 2012 Intel banked on the roll out of Windows 8 to drive PC sales and we all know what happened to Windows 9, it bombed out big time along with Intel marketing aspirations and sales.
Now Intel is back banking on Windows 10 as their 2014 marketing driver and this may help as Microsoft is giving away the OS for free however analysts are sceptical.