What Krzanich is saying is that Intel believes it can take the same processor and make it physically smaller, but for the same manufacturing cost. Alternatively, it could take the same chip and make it more powerful, by doubling the transistor count. Finally, Krzanich is saying that Intel could also choose to manufacture the same chip at a significantly lower price point.
This dovetails nicely with Intel’s newly articulated strategy of embedding computational capabilities in as many devices as possible, shrinking down processors to a point where you’ll simply expect sensors and wearables to embed computational capabilities. Meanwhile, it can dial up computational horsepower where it needs to, while also adjusting its prices for an increasingly competitive PC market.
Intel’s new business model—embedded devices talking with one another and the cloud, and becoming more powerful with each new generation—is what Krzanich called a “virtuous cycle,” with each segment of its business adding momentum.
There are still a few rough edges—for one thing, where Intel’s McAfee security business plays into this. What’s clear, however, is that Krzanich has taken one of the most dramatic steps in Intel’s history. Intel simply isn’t a PC company any more.
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