This implies that Intel's dominance in process technology is a good thing for consumers, which iclearly is not the case. This is the best thing that could happen to the industry: Intel becoming one of many. This would push for more competition, and hence better value for money to consumers.
Intel has developed what its customers (HP, Acer, Dell,etc.) asked for: microprocessors which were faster, cooler, more cores, etc. In doing so, it missed the mobile revolution.
It is very difficult for any company, where the entire infrastructure is structured around complex high-margin products, to adapt to a fast-moving, low margin market. Some companies succeeded: IBM entered the PC market by founding the entire business in Florida, away from the high margin, slow moving mainframe business in New York state. Some failed: CDC was killed by Seagate.
It remains to be seen whether Intel has the courage to accept that the next technology has passed them by and that only dramatic changes will allow them to, at least, catch-up
There's been a lot of focus on Intel recently---with the cut backs in the workforce and the cancellation of their Fab, but also some of their latest technologies. My suspsicion is that the company will be fine in the long run, but competition in servers is sure to keep them on their toes for a while.
I feel there is need for some concern... the issue stems from Intel's estimation of the growth or decline in the PC market. I suppose there will be some sizeable financial write down because of this estimation gap.
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