Intel might need to prepare for a tough year in the global laptop market with its share predicted to fall in 2022 to its lowest level ever.
As Apple inches closer to full departure from Intel-based Macs, industry experts predict that Intel’s share of the notebook market is expected to hit a record low in 2022. Established in 1968 by industry trailblazers such as Gordon Moore of Moore’s Law fame, Intel rose to glory in the PC segment with the development of processors based on the x86 architecture. Starting its microprocessor business with the launch of Intel 4004 back in 1971, the company currently offers processors across low-end Celeron and Pentium lines as well as the high-performance Core and Xeon portfolio.
However, Intel’s journey has not really been a smooth one. The company’s foray into the smartphone market with Intel Atom processors resulted in security flaws, such as Meltdown and Spectre, affecting processors made as far back as 1995. On top of that, delays in moving to the next-gen fabrication process have also contributed to Intel’s worries during the past few years. As AMD continues to eat into Intel’s market share with processors that offer a superior price-to-performance ratio, the rise of PCs powered by ARM-based processors is only adding to Intel’s troubles. The best example of this latter trend is Apple, which is currently in the process of moving away from x86-based Intel processors to ARM-based in-house chips with its M1 silicon.
Market experts speaking to DigiTimes predict that Intel’s market share in the notebook segment is on track to hit an all-time low in 2022. A key factor behind Intel’s dwindling market share is Apple’s departure from the Intel ecosystem, which currently commands roughly 10-percent of the market with its MacBook lineup. Apple is reportedly planning to cut its order of Intel processors by 50-percent in 2021, and will eventually phase them out entirely in 2022. With Apple leaving the client list and AMD strengthening its position in the upcoming quarters, Intel’s market share is expected to fall below the 80-percent mark by 2023.
Intel Facing Difficulties In All Directions
It is worth noting here that Intel’s market share has consistently been above the 80-percent level since 2013, even heading north of 90-percent as recently as 2019. At this point in time, however, the road ahead for Intel seems a tad uncertain. On the one hand, Intel has delayed its 7nm process node by roughly a year. On the other hand, its decision to tap into third-party foundries is a sign that the company is ready to explore other options in case of further delays. Adding to the confusion, Intel’s new chief Pat Gelsinger announced in-house foundry plans called IDM 2.0 that involve making chips for other companies.
Launching 7nm-based processors in 2023 might not be enough to catch up with the competition, both inside and outside of the x86 ecosystem. AMD is rumored to launch 5nm-based processors based on the Zen 4 architecture next year, while the jump to 3nm process with the Zen 5 family might happen within the next couple of years. Apple is already at the 5nm phase with its M1 chip and is rumored to jump to 3nm next year. Then there’s Qualcomm further adding to Intel’s woes with its ARM-based chips for always-on notebooks, while Microsoft is rumored to likely follow in Apple’s footsteps by adopting ARM-based chips for its Surface devices.
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Source: 24baze
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