Why Intel is struggling against AMD: AMD (Advanced Micro Devices) in reality, AMD’s market share climbed by three points eight percent on desktops, three points four percent in servers, and 5.2 percent in laptops from late 2017 to late 2018, and because Intel is the market leader in all of these areas, everything AMD wins is a loss for Intel.
But why is this happening?
AMD was pushed into a strategy of competing on raw price to performance for a long time since they just couldn’t produce AMD Ryzen processors that could compete with Intel’s offerings, pushing them to slash costs.
Intel, on the other hand, could charge whatever they wanted up to a point. Because they didn’t have any meaningful competition at the higher end, they could earn a lot more money.
That changed with AMD’s new design and, although still lagging below Intel in several performance measures, particularly gaming. AMD has spent so many years operating on lower margins. To save R&D, they chose a radically different approach to their CPU architecture, opting for a modular architecture that could be scaled up and down more readily and then for their higher-end multiple core devices.
They also employed many shorter chip lengths to cut down on production waste. Aggressively low costs AMD just developing an excellent CPU for a change and selling it competitively is only part of the story. Intel has all had their own very public issues transitioning to their ten-nanometer manufacturing process. According to their initial plan, they should have been done years ago, yet there is still just a few 10 nanometers skews on the market, but why does it matter?
Here’s the thing: whenever you hear CPU enthusiasts talk about a specific number of nanometers, they’re talking to the size of the transistors on the CPU die. Because more of them can be crammed into a given space, enhancing performance and power efficiency, it’s handy to make your CPUs smaller.
However, although AMD hasn’t had any trouble bringing their transistors down to size, Intel has struggled. Intel, unlike AMD, contracts its fabrication work to facilities that specialize in producing different kinds of processors for a range of applications of customers.
Intel, which has its own fab, is essentially attempting to figure things out on its own. It’s also worth remembering that Intel’s transistor density has always been higher than AMD’s and that numbers like 14 nanometers and 10 nanometers are only estimates, so a 10 nanometer Intel chip may really have a space between the transistors of closer to 8 or so nanometers. This implies Intel has spent the previous four years attempting to wring more blood from the stone of their inferior 14 nanometers or plus process, with just minor performance gains to show for it.
Intel’s troubles with ten nanometers have also contributed to the persistent scarcity of Intel CPUs, particularly at the lower end, because the firm has been spending resources to resolving the problem. It hasn’t produced enough 14-nanometer chips to fulfill the ever-increasing demand for low-power laptops and Chrome books.
Combine this with the fact that Intel prioritizes high-end processors owing to their greater profit margins, and AMD has stepped in and sold tons of its lower-end CPUs to fill the gap on the issue of Chrome books. While Intel is currently dealing with several problems, it’s important to remember that they are still the market leader in CPUs by a wide margin with plenty of cash in the bank.
Qualcomm, best known for its Snapdragon mobile processors, is currently trying to push a line of laptop CPUs optimized for power savings. So they’ve had time to do something about it. Intel is vigorously pursuing GPU technologies and new manufacturing processes for both ten and 7-nanometer devices. It’s just unclear when we’ll see them in significant quantities.
In the meanwhile, we’ll be keeping a close eye on Intel to see if it loses its entire market share to its competitors, but my money’s on them figuring it out. Rather than adopting the MySpace route, Fresh Books is cloud-based accounting software that allows working from anywhere. With the Fresh Books mobile app, you can produce professional-looking invoices while on the move. You may take images of your receipts, so you don’t misplace them, and you can keep track of key discussions.
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