Intel to Cut 12,000 Jobs Amid Declining PC Market

[rp2011]

2 questions:

1- Is it legal to just let go of people just because you don't need them any more, although you are profitable? Whats the difference between this and firing someone?

2-I doubt PC market is getting smaller. The world is dependant on computers more than ever, sure people buy less desktops, but there are servers everywhere and in every office. Also, intel can take on ARM easy. Lets not forget who's running like 70% of the computers in the world.

The PC market has been getting smaller and smaller for a decade now. Enterprise does not need the latest and greatest chips. Especially when a lot of the hard work is being done behind the scenes on the cloud now. Intel is finding it harder and harder to charge a premium for their newest chips that only support a niche market.

 

[AFEPPL]

Looks like the end of the PC era is going to take down a lot of major iconic companies. Intel has said they will start moving away from PC chips into server chips and other more profitable business, basically saying the x86 is about dead. It says MS is going to have to have to transform itself into an enterprise company like IBM did earlier.

Apple is not going to start making their own Mac chips because it wants to, but because it HAS to.
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Apple does not make that much of an impact on Intel's bottom line, but that Apple is transitioning away from intel chips certainly played a part I'm sure. The writing has been on the wall on the death of the x86 chip. Intel needs to abandon a sinking ship and enter better waters.

What end of PC era? Thats an apple marketing sound bite, nothing more. iPads have declined much faster than PCs have. iPad sales are down 25% YoY two years running.. Not a model for success going forward. ARM are the people driving the SOC designs, not apple. Apple are just tailoring the chips to their needs just like all other consumes of these designs.

MS are a cloud company now, they have already transformed unlike IBM that are just in continued decline.

 

[rp2011]

What end of PC era? Thats an apple marketing sound bite, nothing more. iPads have declined much faster than PCs have. iPad sales are down 25% YoY two years running.. Not a model for success going forward. ARM are the people driving the SOC designs, not apple. Apple are just tailoring the chips to their needs just like all other consumes of these designs.

MS are a cloud company now, they have already transformed unlike IBM that are just in continued decline.

End of the PC era is not just about iPads, but smartphones and all other devices not running Windows. Which is in GREAT decline, and will soon bottom out. iPads may not be selling as well, but that's only because people do not replace them as often. But iPad users are not going anywhere, unlike Windows consumers who are most definitely abandoning the platform.

 

[btrach144]

Intel really let ARM takeover what is the cause for declining PC sales, tablets and smartphones. Intel could have owned this market as well but they stuck to what they knew. What a shame. Their other issue is a huge slowdown on innovation and meaningless 5% improvements between each architecture. That means a 20% gain in 4 years. Not enough to convince people to upgrade their 4 year old machine.

Blah, everyone already knows this. End rant.

 

[Three141]

I think that's why they're trying so hard to become Apple's supplier of modem chips for the iPhone, guaranteeing a certain revenue stream as they continue to restructure.

That's a good point, the Brit in me selfishly hopes that Apple sticks with Arm but unfortunately the picture you paint seems more realistic and either Mac's will use Arm processors or Idevices will use Intel chips *shudders*.

 

[AFEPPL]

End of the PC era is not just about iPads, but smartphones and all other devices not running Windows. Which is in GREAT decline, and will soon bottom out. iPads may not be selling as well, but that's only because people do not replace them as often. But iPad users are not going anywhere, unlike Windows consumers who are most definitely abandoning the platform.

You know intel shipped the most units ever right?
I agree with you however on the overall market place, but that's not the market they have been in before - so its like saying BMW sales are through the roof. So what? They don't make cars either...

However IoT will fuel the demand for SOC and its a missed opportunity for AMD and Intel.
Like most technology companies, if you don't transform you hit a glass celling, just like apple did - they become something else when they couldn't move computers. iPad and iPhone sales will fail (iPad sales have already seen this), they have to ensure the past doesn't become the future.

 

[rp2011]

You know intel shipped the most units ever right?
I agree with you however on the overall market place, but that's not the market they have been in before - so its like saying BMW sales are through the roof. So what? They don't make cars either...

However IoT will fuel the demand for SOC and its a missed opportunity for AMD and Intel.
Like most technology companies, if you don't transform you hit a glass celling, just like apple did - they become something else when they couldn't move computers. iPad and iPhone sales will fail (iPad sales have already seen this), they have to ensure the past doesn't become the future.

Like I said, their server chips are what's keeping the company afloat, but the X86 for personal computers is what's dragging it down and where the cuts are coming from. Hopefully, Intel can change it up and stay on top. I have nothing against Intel and it's in everyone's best interest if Intel continues to thrive.

 

[NT1440]

Good point Arm's been doing well of the strength
being a Brit and biased I would hate to see ARN lose out but Intel's low voltage chips will only improve with time


That's a good point, the Brit in me selfishly hopes that Apple sticks with Arm but unfortunately the picture you paint seems more realistic and either Mac's will use Arm processors or Idevices will use Intel chips *shudders*.

It won't conflict at all, ARM doesn't do the modems for Apple. Right now it's Qualcomm or Broadcomm, can't remember which.

ARM is a fantastic company, hats off to them.

 

[Bubba Satori]

Why do millions keep flocking to what?

Our "terrible" society.

 

[Three141]

As tough as it is when people lose jobs, this is a great example of why our society doesn't work.

Firstly, Intel cut these jobs because the tick tock schedule no longer increases profit. They're still profitable just not as much. With the increase of computing power, Intel could produce chips that blow away what we're currently using. However this doesn't align with manufacturers product offerings, giving consumers enough time to recycle their products. Software, and consumer purchases operate at a slower pace now relative to hardware advances.

Secondly, due to the first, our world stinks. We continue to operate in a way to maximize profits and shareholder earnings versus advancing and changing how we do things. People lose jobs, aren't happy, and our home is being turned into a litter box.

I always find this a tough one, I used to get mad at corporate greed but when I worked for a phone retailer I realised it's a vicious cycle and we all contribute to the problem.
I will admit this is not so much on Apple customers as you guys tend to pay top dollar which you don't mind as the overall experience is worth it to you but most customers (including corporations) are always pushing for cheapest prices which has the knock on effect.

I keep thinking where does blame lie and I just end up in a loop.

 

[macs4nw]

So, we are at 14-nm and 10-nm for the next round. What is the smallest practical size that can be achieved?

Transistors as small as one single molecule, basically at the atomic level.

From 'Wired' in 2009, or Wiki and Arstechnica, the latter from 2015.

 

[dysamoria]

The laggard and abusive computer industry is finally, slowly, painfully, dragging its heels into the second stage of its development: maturity. Long time in coming, can't happen soon enough. It's a miserable industry rife with abuse and garbage product that consumers have been conditioned to think of as "normal" and "just the way things are". The bubble burst but it didn't look like a bubble bursting. It's more like a woopie cushion slowly farting itself out of air after being uncomfortably sat on by someone doing their best to hold their weight off it to not suffer the embarrassment.

Except I don't like that all these people will lose jobs just because they followed where the job opportunities were when they went out into the market looking for employment.

 

[BenTrovato]

I always find this a tough one, I used to get mad at corporate greed but when I worked for a phone retailer I realised it's a vicious cycle and we all contribute to the problem.
I will admit this is not so much on Apple customers as you guys tend to pay top dollar which you don't mind as the overall experience is worth it to you but most customers (including corporations) are always pushing for cheapest prices which has the knock on effect.

I keep thinking where does blame lie and I just end up in a loop.

Well that's a great point. Is it the corporate greed or is the consumers feeding it? It's probably a bit of both.