Friday, September 9th 2022
Intel Expects to Lose More Market Share, to Reconsider Exiting Other Businesses
During Evercore ISI TMT conference, Intel announced that the company would continue to lose market share, with a possible bounce back in the coming years. According to the latest report, Intel's CEO Pat Gelsinger announced that he expects the company to continue to lose its market share to AMD as the competition has "too much momentum" going for it. AMD's Ryzen and EPYC processors continue to deliver power and efficiency performance figures, which drives customers towards the company. On the other hand, Intel expects a competing product, especially in the data center business with Sapphire Rapids Xeon processors, set to arrive in 2023. Pat Gelsinger noted, "Competition just has too much momentum, and we haven't executed well enough. So we expect that bottoming. The business will be growing, but we do expect that there continues to be some share losses. We're not keeping up with the overall TAM growth until we get later into '25 and '26 when we start regaining share, material share gains."
The only down years that are supposed to show a toll of solid competition are 2022 and 2023. As far as creating a bounceback, Intel targets 2025 and 2026. "Now, obviously, in 2024, we think we're competitive. 2025, we think we're back to unquestioned leadership with our transistors and process technology," noted CEO Gelsinger. Additionally, he had a say about the emerging Arm CPUs competing for the same server market share as Intel and AMD do so, stating that "Well, when we deliver the Forest product line, we deliver power performance leadership versus all Arm alternatives, as well. So now you go to a cloud service provider, and you say, 'Well, why would I go through that butt ugly, heavy software lift to an ARM architecture versus continuing on the x86 family?"
Finally, Pat Gelsinger has emphasized that the company will continue to exit more businesses where it doesn't thrive. Just like it did with Optane memory, we could see Intel pulling out of other markets that don't necessarily align with the leadership's vision. Given that the CEO appointed a new leadership group and performed major company structure reforms, it is interesting to see what comes out of this. Just a few days ago, we saw the appointment of Shlomit Weiss as senior vice president and Co-GM of the Design Engineering Group.
Source:
via Tom's Hardware
The only down years that are supposed to show a toll of solid competition are 2022 and 2023. As far as creating a bounceback, Intel targets 2025 and 2026. "Now, obviously, in 2024, we think we're competitive. 2025, we think we're back to unquestioned leadership with our transistors and process technology," noted CEO Gelsinger. Additionally, he had a say about the emerging Arm CPUs competing for the same server market share as Intel and AMD do so, stating that "Well, when we deliver the Forest product line, we deliver power performance leadership versus all Arm alternatives, as well. So now you go to a cloud service provider, and you say, 'Well, why would I go through that butt ugly, heavy software lift to an ARM architecture versus continuing on the x86 family?"
68 Comments on Intel Expects to Lose More Market Share, to Reconsider Exiting Other Businesses
Soon (TM)
/s
I'm guessing the new Intel CPUs won't beat Ryzen 7000 series.
The more successful AMD get, the more their practises will mirror Intel's, just watch.
Thay have never been different and never and will no be your friend.
I fail to see why this even matters if amd had 51% of the market and intel had 49% does it really matter or vise versa.... Only blind fanboys care about that neither of these companies give a damn about us just our $$$ that hasn't changed and never will all companies try to make every $ they can.
Why not blaming your foot for hitting the brakes?
If more people really understood this, perhaps they wouldn't spend fewer years arguing for stupid social, economic and environmental changes - and just get on making the most of the short number of years they have on this planet.
We all love tech here it's why we are even part of this forum in the first place we should want competition and good products for whatever our budgets are who makes them doesn't matter. This is going to be an awesome year (maybe not the pricing) we are getting 4 major hardware launches I can't wait for TPU and my other sites of choice to get them in and benchmark them will I loose sleep if the 13900k is 5-10% faster than the 7950X nope or vice versa... Will I call someone dumb for buying a 7950X even if its slightly slower but uses less power nope.... I'm sure whoever is upgrading this year regardless of silicon maker will get some awesome products....
Same with AMD fanboys rooting for intel's demise it's stupid as well we need them to come out with good products on time to keep amd honest if Raptor Lake is really good and sells well I'm pretty sure we will see a 7600 non X and price drops on 7700X. Benefits everyone.
Now the same is happening. Competition from AMD is so alien to them that they can't answer properly. Intel's management is so out of touch they seem to think that everything will be solved on its own because "hey, we are Intel".
www.reuters.com/article/us-intel-ceo-idUSKBN1JH1VW
Ever since then upper management has been shooting blanks and making excuses. They all believe that Intel is Too big to fail, well in 4 short years we have seen that is not the case.
NOTE: It is unfortunate that I have/had to deal with those types of Narcissistic individuals that reside in Silicon Valley and Silicon Sacramento.
They are overall concerned about their golden parachutes and stock options than really getting down to the problem and fixing it.
With that I am curious with the GPU division and am with caution, looking forward for them competing in the video market. I might even pick one up if they are priced right as back in the day I have my Cyrix based computer hopefully in storage.
As long as TSMC is getting the machines first, Intel will be playing catch up.
www.cnbc.com/2022/05/16/intel-shareholders-reject-executive-pay.html:)
Late delivery erodes customer trust. And even if intel technically does deliver a superior product, customers who switched to Epyc won’t instantaneously switch back. Gelsinger shouldn’t be so quick to assume this. For intel to start to gain market share again, it must deliver superior products on time and in volume. Genoa is looking mighty massive… when will intel catch up ?
It is almost a bit shocking just how honest and open Gelsinger is here because he is basically saying that we can write off Intel until 2025. He is almost issuing an advance apology for a series of garbage products until then :) .
I would say, even if you are a die hard AMD fan and if you are from a western country, you should wish Intel luck. We will need strong western semiconductor companies with fabs in the long run for geostrategic reasons. It is not very smart to wish for Intel to die. Not just to keep AMD honest. That's the least concern once Taiwan is ripe for the picking.
I would also disagree with a previous poster who said that their GPU efforts are "rubbish". No. It actually makes sense because computing has long evolved beyond the pure CPU space. AMD and nVidia make a lot of money with GPUs outside of gaming. The datacenter revenue of nVidia last quarter surpassed gaming and was up +61% so massive growth in that sector. And mirroring Intel's GPU efforts, nVidia is working on a CPU (nVidia Grace) to complete their eco system.
Intel should have stuck with Larrabee and fixed it. They would be in a much better position in the datacenter space right now with a strong CPU + GPU computing package. Now they have to play catch-up game again but it is certainly not "rubbish". They need a strong GPU segment in order to compete in the long run (5+ years).
And still no signs of exclusivity deals between AMD and dell etc so wrong IMHO.
Price wise, yeah when they're the best the price goes up, if Intel competes as with AL then the price's get competitive, totally like any other duopoly market.