Aurich LawsonIn part one of this two-part series, we look at the evolution of AMD from a second-source supplier for companies using Intel processors towards CEO Hector Ruiz’s ideal of a “premium” chipmaker that could sell to the likes of Dell and Intel.On June 10, 2000, Advanced Micro Devi…
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Microsoft‘s own Surface Pro tablet starts at $899, and many other Windows Pro devices are over $1,000.
But that will soon change, Otellini predicts.
He expects to see Intel-based Windows 8 tablets in the $300-$400 range by the fall:
… I think people are attracted to touch, and the touch price points today are still fairly high, and they’re coming down very rapidly over the next couple of quarters. … [as] OEMs start looking at new form factors … the competitiveness of that platform is going to be substantially different, at price points down into the $300 to $400 range enabling touch. We didn’t have that last year.
He says that other Intel-based tablets are coming too, priced as low as $200, though he didn’t say what operating system these would use. He described them as “touch-enabled Intel based notebooks that are ultrathin and light using non-core processors.” These could be Android devices because Intel supplies chips for Android devices, too.
And he slipped in a light zinger at Windows 8 and its learning curve, too:
I’ve recently converted personally to Windows 8 with touch, and it is a better Windows than Windows 7 in the desktop mode … There is an adoption curve, and once you get over that ad! option c urve, I don’t think you go back. And we didn’t quite have that same kind of adoption curve in Windows 7 versus XP before it.
He’s certainly not alone in saying these things. Pundits have been telling Microsoft the same thing since before Windows 8 actually began shipping, while people were playing with the preview versions of it.
None of this will Otellini’s problem soon enough. After 40 years with the company, he is retiring in May.
The decline in desktop PC sales is beginning to ripple throughout the industry, as Intel has revealed plans to wind down its desktop motherboard division over the next three years. According to AnandTech, the company will release boards that are based on the Haswell architecture before completely suspending development. Moving forward, Intel will instead focus its efforts on creating form factor reference designs for the Ultrabook, tablet and desktop markets. Curiously, one product that’s currently immune from the announcement is the Next Unit of Computing (NUC), a miniature barebones system that will see continual development from Intel. While custom PC builders will likely take a moment to reflect upon the news, it’s said that the transition is unlikely to affect the company’s workforce. Instead, current employees will be absorbed into other divisions within Intel. After all, there’s no point in showing talented engineers to the door, even in an age of market shifts.
Apple’s capital expenditures for the last year were $8.3 billion, which is significantly above its rivals, as this chart from Horace Dediu at Asymco shows.
Dediu believes Apple’s capex is significantly above its peers because Apple is investing in data centers like Google, and process equipment like Intel. As a result, its quarterly spending is closer to Google plus Intel.
Intel’s about to get its peanut butter all over Motorola’s chocolate. And, in addition to the Reese’s Pieces, we’ll see the first Intel-powered, Android smartphone in the second half of this year.
The two companies announced today that they’ve signed on for a multi-year strategic relationship which will span multiple platforms—including tablets and phones. Specifically, Motorola hopes to employ Intel’s low power system-on-chip architecture. “With Android as the leading smartphone OS globally and advancements in computing technology we see tremendous opportunity.” Sanjay Jha, Chairman and CEO of Motorola Mobility told Business wire. Intel’s new Medfield chip could to be on-board.
And, while the phones may not end up as sleek as the Intel design reference above, with the Medfield’s ability to support up to a 24MP camera and 1080p playback, Apple may have some real competition on its hands. What’s more, given that Google owns Motorola, these phones could very well have an inside track to the latest and greatest Android OS builds. [Marketwatch]
Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.
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