Intel has admitted that it’s focusing on high-end CPUs, instead of the cheaper entry-level ones, saying that the supply is “tight” for the budget market.
In an open letter, the company’s interim CEO Bob Swan confirmed this and wrote that the supply for this segment of CPUs is very low which is why you might have trouble finding a cheap computer. The reason for this is that Intel is focusing on the high-end market this year.
Intel foresees that more and more people, especially gamers, will upgrade their computers this year as well as commercial entities so they’ll need to push more resources to their expensive Xeon and Core processors.
Competition Getting Fired Up
This might be a good entry point for AMD. It announced a fairly cheap chipset that promises good battery life, good performance, capable of even gaming while keeping the prices low. Intel, on the other hand, has not made a similar announcement as of yet.
Intel is on a roll to launch its flagships for the year, it has already decided to invest $1 billion on its current 14nm production facilities based in Ireland, Israel, Arizona, and Oregon. According to the company, it plans to produce its upcoming 10nm chips, dubbed Cannon Lake, in high volumes in 2019.
At the end of the letter, the interim CEO concluded,
The actions we are taking have put us on a path of continuous improvement. At the end of the day, we want to help you make great products and deliver strong business results. Many of you have been longtime Intel customers and partners, and you have seen us at our best when we are solving problems.
The competition will only get more interesting when AMD steps up with its new chips. AMD’s Ryzen series made things quite difficult for Intel when it managed to match or even beat the Intel chips’ performance for a lower price.