Originally Posted by Kurumi Tokisaki
Sounds like Intel is throwing in the towel on the CPU market.
What he is saying is that they got so hang up about trying to control the whole CPU market (and trying to hold 90% of it), and they have been manufacturing CPUs like crazy, that they missed out on making the 5G modems (because they didn't have enough manufacturing for it) and other stuff, and getting stuck on not being able to manufacture enough, that they are missing on money.
If for example they produce less CPUs but able to pull resources more into modems, they could have got into the modem industry with apple, which could create a new revenue market, which for them could increase a lot more compared to the CPU market they can't fulfill.
Same goes for their upcoming GPUs.
So it makes sense to divert their resources from tunnel vision into the CPU market (especially with only having 7nm in 2021), to other markets. 30% of a 300B$ market (90B$) is better than 90% of a 66B$ market (59B$).
They are big enough to be able to divert more resources and leave some room in the CPU market for AMD and ARM, and gain more on other markets they are not present in, but just as big and allow them in the future to produce more technology they don't have today.
So it makes perfect sense overall. Especially since they lost on the 7nm and multi core run this round, and without diverting resources, it will take them at least another year in which they are losing their basically only market, without creating new markets.