In 2022, Intel suffered its most dramatic downturn in recent years. Although current market shares may not fully reflect it, experts have labeled the company’s situation as “Intel’s historic collapse.”
The Graphics Are Not Optimistic For Intel
Intel has reported a devastating financial outlook for the last quarter and full year of 2022. While the company announced a loss of $661 million in the last quarter, it reported that it recorded a profit of $8 billion in 2022, with a 60 percent decrease. Moreover, it’s expected that these figures will continue to fall into 2023 with no signs of improvement on the horizon. Although Intel still holds a high market share, they have been surpassed by AMD in market value.
In its bid to augment revenue, Intel aims to save 8-10 billion dollars beginning in 2023 and extending till 2025. This cost-cutting plan could consequently lead to layoffs and withdrawal or reduction from markets that are not part of their core business segments.
PC sales have dramatically decreased by 30% in the industry as a whole, and Intel has taken its fair share of the hit. Not only from general market conditions but also due to stiff competition from AMD: Intel’s PC and server market shares dropped significantly from 90 percent it had back in 2017 to 70 percent today. Additionally, Taiwan Semiconductor Manufacturing Company (TSMC) is now producing nearly as many chips as Intel! Interesting times lie ahead when tech giants like Nvidia, Apple, and Amazon enter into the processor-making realm too.
Despite Bad Graphs, Intel Is Sure To Make A Big Comeback Against AMD
Despite this, Pat Gelsinger – Intel‘s Chief Executive Officer – reassured investors during a conference call that “We lost share, we lost momentum. We think this will stabilize this year.” Although having to tackle large quantities of inventory proves to be a long journey all on its own, Intel still looks forward to launching their upcoming Meteor Lake processors- showcasing the company’s very first chip design later in 2023.
