Intel Interim CEO Comments On CPU Supply Challenges

[phoronix]

Phoronix: Intel Interim CEO Comments On CPU Supply Challenges

There have been rumors going on in recent days about Intel hitting supply challenges with their current-generation 14nm products. Intel CFO and Interim CEO, Bob Swan, wrote a public letter today outlining those challenges...

http://www.phoronix.com/scan.php?page=news_item&px=Intel-CEO-Supply-Challenges

[ldesnogu]

We're prioritizing the production of Intel Xeon and Intel Core processors so that collectively we can serve the high-performance segments of the market.

It must be a coincidence that these also are the CPU that are the most expensive.

[wagaf]

It must be a coincidence that these also are the CPU that are the most expensive.

Well Intel isn't a charity, it's their job to maximize shareholder value, so they prioritize products with the highest margins...

[ldesnogu]

Well Intel isn't a charity, it's their job to maximize shareholder value, so they prioritize products with the highest margins...

Silly me, I had completely forgotten, thanks for reminding.

PS - I was being facetious, they are making the best choice for them. And as a consumer I prefer they focus on higher end CPU, that's what I'm interested in.

[halo9en]

"...we continue to expect volume production in 2019".

Intel, ready for 10nm "next year" since 2015.

[dungeon]

Vuuulneraaabiilitieeees, Vuuulneraaabiilitieeeeeees!!!

[schmidtbag]

Well Intel isn't a charity, it's their job to maximize shareholder value, so they prioritize products with the highest margins...

Um... no, it isn't (or it shouldn't be, anyway). Their job is to make processors that people want to buy. Prioritizing shareholder value above all else is exactly why the consumer keeps getting screwed over.

[ms178]

Well Intel isn't a charity, it's their job to maximize shareholder value, so they prioritize products with the highest margins...

I get your point and it is a rational decision to prioritize high margin products. On the other hand we have seen that their monopoly in Servers / Client market lead to technological stagnation and unhappy customers. Intel gambled on their 10nm process and lost their lead in manufacturing. Missteps happen, but where are their backup plans? They have an army of great engineers but they bet on the wrong projects (IoT and mobile) and lost their focus. AMD's own mistakes provided them with more than enough time to fix their architecture and manufacturing. But still there is nothing revolutionary from them in this regard (with some notable exceptions) while AMD invested in MCM interconnects to make up for their manufacturing deficits. Very clever, indeed!

This might turn out to be a great example why short sighted decisions and underinvestment in your core product strengthens your competition in the long term, losing customers and profits in the end.

[starshipeleven]

It must be a coincidence that these also are the CPU that are the most expensive.

Technically speaking, these are the just the CPUs they can markup more.

Just because something is very expensive it does not make it the most profitable product of the company.

In this specific case yes, they are slowly retreating from the lower-end stuff as ARM-powered devices are basically cornering that market.

[starshipeleven]

Um... no, it isn't (or it shouldn't be, anyway). Their job is to make processors that people want to buy. Prioritizing shareholder value above all else is exactly why the consumer keeps getting screwed over.

Wrong, Intel is in the market to make money, not to make great processors everyone wants to buy.

This is capitalism, companies aren't your friends, everyone wants to screw you over to make a profit.