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Intel's laying off 12,000 people: Five hurdles Intel faces in the near future

Tamlin Magee | April 22, 2016
It's not plain sailing for Intel as it plans to realign its focus away from the PC market and towards data center and Internet of Things divisions.

The rise and rise of a viable alternative to reliance on Intel architecture could open up opportunity for traditional partners to gain some leverage in pricing and, in turn, bloody Intel's nose in markets it has previously taken for granted.

But remember - Intel's far from done

All of the above isn't to suggest resilient Intel is done for. The chip maker has enough R&D cash to spend in areas it has spotted either threats or opportunities, but Intel's performance in mobile does show that spending alone isn't the way forward.

Financially, Intel's revenues are up year on year - at nearly $14 billion in total - and with operating income of $2.6 billion it is still clearly highly profitable, if not quite profitable enough for the investors (to the tune of 12,000 jobs).

In its Q1 financial filing, Intel boasted of strength in its data centre and internet of things groups. Intel understands that there are massive opportunities in smart platforms and the cloud as the planet hurtles toward a reality of a connected world. Its overall market standing is healthy and Intel is maintaining domination status in servers.

We're in no doubt that Intel has a plan. But these are developments that, if not tackled head-on, could well shake up Intel's standing in the chip industry, with all the repurcussions that would entail.

 

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