I feel that this is an inflection point for both Intel and Microsoft. The will either adapt like IBM did, or get destroyed like Kodak. Intel has a very high cost business model that can only be supported by high-ASP parts. The ARM-based SOCs being producted by Samsung and Nvidia have tiny ASP compared to x86 CPUs. Even if Intel destroys the competition in this arena, it would be a pyrric victory, since they would lose money on each chip.
I expected Q1 to be a slow season. This shouldn't be a big surprise. Q1 is historically a slow season. But with current trend such as smart phones and tablets, PC sales may continue to be a big problem. How will Intel be able to counteract? Will offering more foundry service be a solution for Intel?
The only good news out of this piece is the projection of $600 Ultrabooks price point. Hopefully the adaptation of the ultrabooks will give the pcmarket a boost and in some way create the level of demand that will drive the job creation badly needed during these times.
Replay available now: A handful of emerging network technologies are competing to be the preferred wide-area connection for the Internet of Things. All claim lower costs and power use than cellular but none have wide deployment yet. Listen in as proponents of leading contenders make their case to be the metro or national IoT network of the future. Rick Merritt, EE Times Silicon Valley Bureau Chief, moderators this discussion. Join in and ask his guests questions.