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The future for Intel is small

Wednesday, 20 April, 2016

Headline: Intel to Cut 12,000 Jobs, Puts Focus on Cloud. Why this? Why now? Because of two self-inflicted mistakes:

  • (i) ignoring the decline of the PC
  • (ii) ignoring the rise of the smartphone

“The old way of doing things reaches perfection just as it’s time to be replaced,” says Benedict Evans when telling people that mobile is going to eat the world. And it’s true. As one technological ecosystem becomes obsolete, it is replaced by a new model that expands to fulfill the needs of an even larger market. So, Intel out.

Is has been predicted that 70 per cent of the sub-Saharan population will be on 3G network connections by 2019, and that 80 per cent of the world’s adult population will have a smartphone by the end of this decade. In other words, the market for the IT industry is, for the first time in history, everyone on this planet. Intel thought that the “complete” internet was available on a PC while smartphones offered a “miniature” version of the web. That view has been upended and smartphones now offer a more mobile, flexible, full-featured internet experience. Mobile has eaten Intel’s lunch.


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