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More on Intel: PC stabilization seen, foundry opportunities eyed

  • Though the PC market is still declining, it's "beginning to show signs of stabilization," says Brian Krzanich during Intel's (INTC +2.4%) investor day.
  • The comments follow Q3 data from Gartner and IDC indicating slowing Y/Y shipment declines, thanks to relatively healthy U.S. and enterprise sales. There have also been various supply chain reports noting shipments to developed markets, where Intel's ASPs are higher, are stabilizing a bit (emerging markets remain weak).
  • Separately, Krzanich states Intel is looking to grow its nascent foundry business, even by taking on 3rd-party mobile chipmakers as clients. Many have speculated Intel, which has already shown a willingness to manufacture ARM-based processors for foundry clients, will try to reel in Apple.
  • As with mobile CPUs, Intel is banking on its manufacturing process lead to take foundry share (industry giant TSM will remain a formidable rival). Intel has landed FPGA vendor Altera as a client, and reportedly also has a deal with Cisco.
  • Previous: Intel sets aggressive tablet target
Comments (4)
  • Esekla
    , contributor
    Comments (2291) | Send Message
     
    Hopefully Intel negotiates better deal with Apple than other chip suppliers have done in the past. On the other hand, maybe Apple's bargaining power is beginning to crack, along with its mobile market share.

     

    http://seekingalpha.co...
    21 Nov 2013, 02:43 PM Reply Like
  • Jiaberg-Sydney-OZ
    , contributor
    Comments (156) | Send Message
     
    I always say that the decline in pc sales since late 2010 will not continue. There will be a remix of pc/tablet ownership.

     

    Tablets are useful however there are also different and excellent utility for pc-desktop/laptop. To me, over long term, households with 4 may have one desktop and perhaps 4 tablets and one more laptop. 2 people household may have one desktop and 2 tablets.

     

    The logic is simple. A laptop is a personal experience. This is and will be replaced by tablets. So a household needs a desktop to have that shared experiences and for that more serious works.

     

    Business after the difficult economic period of the last few years will gradually start to invest in new pc and tablet combination. To me, many will see the value of tablet vs laptop and will refocus on desktop for their employees.

     

    Yes, I believe that desktop will come back in favour among many users- home and business. Vs laptops, they offer much better value by significant margin. With tablet more or less a must for most, the justification to have expensive full-featured laptop vs desktop is just not there anymore.

     

    When Apple brings out (I say when and not if) larger iPad and iPhone in 2014, many laptops will lose their sales again. Other brands will follow with larger tablets too. Windows Surface, ironically, will benefit from the larger Apple.

     

    The public will take note while Android models may lose out. This will allow Microsoft-Intel to have a better bargain power over the OEM.
    21 Nov 2013, 03:04 PM Reply Like
  • Bob Castleman
    , contributor
    Comments (138) | Send Message
     
    I still need a PC to do my "real" work. And I need to buy a new one in the next 12 months. The total death of the PC is unlikely. A smaller market? Certainly. And with the demise of Windows XP, there are a lot of PCs out there that will need to be replaced with something.

     

    Intel needs a more diverse product mix, clearly one that includes significant penetration into mobile. Leveraging their foundry assets is just another piece of a good mix, if they actually chase it.
    21 Nov 2013, 03:11 PM Reply Like
  • Terrier Investing
    , contributor
    Comments (77) | Send Message
     
    I wrote up a deeper summary here: http://seekingalpha.co...
    21 Nov 2013, 04:56 PM Reply Like
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