Intel Processor Market Share May Fall to New Low Next Year Due to Apple Silicon

[ph001bi]

$pple makes up a little percent of Intel's x86 market. $pple is just little potatoes when it comes to the x86 processor.

10% of any company's revenue isn't small potatoes. 10%, especially on your higher margin products, can be the difference between making money or not. It certainly impacts your ability to spend on R&D meaning you lose out even more in the long run.

 

[Johnny907]

Yeah no. Intel is going to be fine thanks to everyone buying laptops that aren’t made by Apple.

 

[BeefCake 15]

Funny how Apple (fanboy) website always assume that CPU market is affected by Apple products.
As if AMD and Intel depend on Apple… Clearly NVIDIA is also doing perfectly fine without Apple!

Both Intel and AMD are doing greate in the x86 market!

x86 is a dinosaur....Windows is working on making their ARM OS more mainstream and AMD is killing Intel with plans to migrate to other architectures.

 

[Nuno Lopes]

Not very much. AMD simply can’t make chips fast enough to fill the demand.

That is a nice problem to have.

 

[chucker23n1]

Yeah no. Intel is going to be fine thanks to everyone buying laptops that aren’t made by Apple.

Apple has demonstrated that you can do a very efficient laptop without Intel.

You can bet Dell, Microsoft and others are looking into how to do the same.

 

[incoherent_1]

As I said above, I didn't realize how bad efficiency was in Intel products until I got my M1 Air. As an example I've been on Zoom for 45 mins, with multiple safari tabs open, listen to music connected to my AirPods, and have only lost 5%. I'd have been down 10-15% at least on my Intel MacBook Pro.

You’re being far too generous to the Intel MBP — it’d be down more like 25-30%, at least based on my experience

Either way, that’s amazing performance. Can’t wait to see the next batch released!

 

[Wildkraut]

That's funny 'cause I have never been as productive on Windows as I am on a Mac.

Have you ever been productive? 🤣

 

[Abazigal]

Funny how Apple (fanboy) website always assume that CPU market is affected by Apple products.
As if AMD and Intel depend on Apple… Clearly NVIDIA is also doing perfectly fine without Apple!

Both Intel and AMD are doing greate in the x86 market!

To me, the danger isn't in Apple stealing all the profits in the market, but in Apple creating their own parallel market and rewriting the rules of the game.

I think people have a valid point when they argue that the absence of Apple's patronage is unlikely to impact Intel's bottom line too much. There is however, always the possibility of more people flocking to Macs because of the superior performance afforded by the M1 chip, and / or the sexy new form factors that the M1 chip enables (you will not find an intel-powered AIO of similar build anywhere else).

This means more money to Apple (who saves a bundle from not having to pay Intel a premium for selling their chips), and less money on the table for the competition.

The other danger is how this may prompt OEMs to start researching the feasibility of designing their own processors, or even migrating to ARM. Can you imagine a future where more OEMs are using their own custom-designed chips instead of going with Intel CPUs and AMD GPUs? Imagine if building your own PC one day becomes a niche hobby because the sacrifices to performance from not using an integrated chip is just too much.

Of course nobody can predict what the future holds, but Blackberry wasn't obsoleted overnight by the iPhone either. And if the competition keels over due to being obsoleted by Apple, then so be it.

 

[jmgregory1]

I think the tack that Apple has taken in regards to energy efficiency of their SoC’s is where Intel and AMD are severly lagging. Power, or the need for high energy amounts to run a computer, comes at costs beyond just requiring larger batteries on laptops, or big power supply units on desktops. Why use all that energy if you can instead produce a system that gets the same work done using a fraction of the energy? The power needed to run these inefficient systems has to come from somewhere and unless you’re running a full solar array and battery system at home, you’re using and paying for this energy that may actually be coming from less sustainable sources like coal or natural gas fired power plants.

I laugh every time I see a comparison of a M1 MacBook Air to some “M1 killer” laptop that has to be plugged in just to be even close to providing similar performance. Unplug them and they go into power efficiency mode where their performance is cut significantly. And if they don’t do that, then their battery life lasts a couple of hours. It’s like every PC laptop out there now is really a desktop all in one, because it needs to be plugged in to be usable.

 

[huge_apple_fangirl]

A few points:
1. Apple is a very small part of Intel’s sales revenues- maybe 5%. Their share of Intel’s profits are probably a little higher though, because Apple bought Intel’s most expensive consumer chips, not crappy Pentiums and Celerons.
2. Intel has likely already lost 90% of their sales to Apple- the MBA is fully on Apple Silicon and is the most popular laptop in the world, most of the Macs Apple sells now have M1, and with new MBP launching this quarter or next, new orders from Apple have likely already dried up. So the pain is probably over.
3. AMD has around 22% (?) of the x86 market. They just hit 10% in server, they are already close to 50% in desktop- they need to be more than 10% in laptops to hit 22%. So Intel is already below 80% in laptops.
4. The small amount of revenue that Intel will lose from Apple will be more than made up from the billions of in government subsidies they are about to receive. So net-net, they are fine. Although it sure is convenient for them that as soon as they finally start to get in trouble after years of mismanagement, the government decides that semiconductors need to be subsidized. No one stepped in to help AMD when they had to sell off GlobalFoundries to raise capital. No one helped GlobalFoundries when the couldn’t afford to continue with 7nm.

 

[Wildkraut]

Yup. And Windows 11 doesn't fix that.

View attachment 1794872

So windows are now rounded (for some reason). But Task Manager still has the look from Windows 8, not 10. And MMC still has the look from Windows 2000, with minor feature additions in XP and a new icon set from Vista (not 8, much less 10). You can see in that disk management panel that they haven't touched that graphical overview in at least 22 years (Windows 2000 betas).

You're right, but who cares for how the TaskManager or MMC looks like. It must work as it should, and display the stuff admins needs, that's all. Anything else is pure cosmetics. When I open the Task Manager, or in my case (Process Explorer), the last thing I would care is for how it looks like.

 

[bobenhaus]

10% of any company's revenue isn't small potatoes. 10%, especially on your higher margin products, can be the difference between making money or not. It's certainly impact your ability to spend on R&D meaning you lose out even more in the long run.

How much money does Intel make from Apple?​

Intel doesn't disclose how much money it generates from Macs, but UBS analyst Timothy Arcuri estimates Apple only accounts for 2%-3% of Intel's annual sales, or $1.5 billion to $2.3 billion of its trailing 12-month revenue.

Intel didn't provide any guidance for the full year, but analysts are only expecting its revenue to rise about 3% this year and 1% next year due to COVID-19 disruptions, its own chip shortage, and competitive pressure from AMD (NASDAQ:AMD).

 

[arvinsim]

Yes Windows is better in the business world.

On the consumer side Windows is simply horrible. The Microsoft eco system for consumers just plain sucks. Especially compared to Apple. PC gamers use Windows because there is no other option for PC gaming.

good thing for Apple the consumer market is bigger than the business market for computing devices.

Errrrr...

The consumer market majority is using Windows.
The margins in the business market far outweighs the consumer market.

 

[ikramerica]

Can I say Intel earns this decline themselves? From major delay of 5nm to attacking campaign, to bragging about expertise, to barely any improvements YOY. I don’t think apple silicon is the determine factor of Intel’s decline, but maybe close to be the “last straw” to crush the company into recession.

I think they have been riding the “Core i” name too long also. Adding an i9 a few years ago to simply take over for the top i7 and reconfiguring the tiers didn’t help.

What’s in a name? Marketing, novelty, newness, stuff like that. I mean, they hang on to the Celeron and Pentium names still, and even though they aren’t your father’s pentiums, does anyone covet a pentium?

Even using the marketing term “11th gen” starts to make the product sound old, not new.

But it’s also the hallmark of a lazy company, which triggers an image in the mind of the consumer of a company that really has nothing new to offer.

 

[Unregistered 4U]

Intel's share will fall is because of AMD in the x86 segment.

plus they've been generally lazy in their upgrade path. With all the things that AMD is doing, Intel is very yawn inducing.

One thing that AMD can’t do is match Intel in processor production, and that’s the most important thing.

 

[Unregistered 4U]

That is a nice problem to have.

It’s ONLY a nice problem to have if all your potential customers are willing to wait… if there’s absolutely no competing solution that’s “just as good”. As it is, there are millions that MAY want to buy a new AMD computer, but will not be able to find one for order and will settle for Intel. That’s been AMD’s problem for years now.

 

[Wildkraut]

How much money does Intel make from Apple?​

Intel doesn't disclose how much money it generates from Macs, but UBS analyst Timothy Arcuri estimates Apple only accounts for 2%-3% of Intel's annual sales, or $1.5 billion to $2.3 billion of its trailing 12-month revenue.

Intel didn't provide any guidance for the full year, but analysts are only expecting its revenue to rise about 3% this year and 1% next year due to COVID-19 disruptions, its own chip shortage, and competitive pressure from AMD (NASDAQ:AMD).

People also likes to forget that those companies like Intel are deep into the server market, that's were Intels primary money comes from, then comes the consumer, business client market of all the manufacturers like Dell, Hp, Lenovo, etc. and then last but not least Apple.
But thats okay, simply a limited consumer point of view of MR users. The only current competitor is AMD, Apple is just a drop water on hot stone.

Apples business would not even run without Intel, their whole Cloud Infrastructure is build on Intel CPUs.

 

[ikramerica]

The way people talk about the "Control Panel vs Settings" saga... you'd think that's all they ever do in Windows 10.

Look... if having a couple places to change settings is the worst part of Windows... I'd say it's fine.

Let's not forget how some iOS apps have their settings inside the app... while you have to go to the actual Settings app to change others.

True. And that is a horrible UI experience. But at least there’s a valid reason.

Apple won’t let apps have direct access to security settings. The apps can only ask iOS for permissions, and you need to agree all in one place, which also leads one to browse what ALL the apps are asking for more regularly. I have noticed other apps asking for the moon for no reason.

 

[bobenhaus]

Too bad Intel is here to stay no matter what $pples does with their money. Intel x86 cpu's are superiors workhorses for computing power and gaming as a whole. the M1 chip is just a mobile phone CPU that is now in iPads, iPhones, iMacs and Macs. someone is getting ripped off and its not Intel customers.

 

[organisum]

delete

 

[cmaier]

A few points:
1. Apple is a very small part of Intel’s sales revenues- maybe 5%.

Or maybe 10%, like Intel says it is.

 

[huge_apple_fangirl]

Apples business would not even run without Intel, their whole Cloud Infrastructure is build on Intel CPUs.

C’mon Apple! Bring back Xserve on Apple Silicon! Do it!

 

[ajfahey]

Ain’t competition wonderful. No wonder companies try to keep it from taking hold anyway they can.

 

[cmaier]

Too bad Intel is here to stay no matter what $pples does with their money. Intel x86 cpu's are superiors workhorses for computing power and gaming as a whole. the M1 chip is just a mobile phone CPU that is now in iPads, iPhones, iMacs and Macs. someone is getting ripped off and its not Intel customers.

LOL. Except that the M1 is faster than all but the fastest Intel processors, and those faster Intel processor burn 4 or 5x the power to beat M1.

And I’m sure M1 is the end of the line - the M2 coming out in August won’t be at all faster than the M1, right?

 

[huge_apple_fangirl]

Or maybe 10%, like Intel says it is.

Where does Intel say it is 10%? Analysts have pinned it at 3-5%?