Intel aims to capture the PC market with its low-cost PCs
Intel's growth strategy and offerings in the PC market (Part 5 of 17)
Haswell-based processors’ longer life
Intel (INTC) follows a “Tick-Tock” strategy where PC chips are upgraded in 12–18 months. However, with the delay in release of PCs with fifth-generation core processors—due to manufacturing glitches, it prolonged the life for fourth-generation core chips based on the current Haswell architecture.
To gain exposure to Intel, you can consider investing in the Market Vectors Semiconductor ETF (SMH), the Powershares QQQ Trust (QQQ), or the Technology Select Sector SPDR Fund (XLK). Intel makes up about 19%, 3.41%, and 3.55% of these ETFs, respectively.
Intel intends to bring Broxton to low-cost PCs, mobile phones, and tablets in 2016
Intel’s Braswell processor, as we saw earlier in this series, is built on the company’s 14nm manufacturing technology. It has an Airmont processor core. It features Intel’s Gen 8 graphics. Intel claims that the cost for its next-generation 14nm Celeron/Pentium products, expected in 2015, will be lower than its Bay Trail-M/D, as the above chart shows.
Intel’s new Broadwell processors are equipped for Microsoft (MSFT) Windows as well as Google (GOOG) (GOOGL) Chromebooks.
Broxton aimed at low-cost PC market
Intel’s Broxton is built on the same 14nm technology with the inclusion of the next-generation Goldmont processor core and the company’s Gen 9 graphics. Gen 9 graphics are also present in Skylake.
As the above chart shows, due to the low costs involved with Broxton, it’s expected to target the low-cost notebook or tablet PC market, mobile phones, and tablets by 2016. An Intel employee’s LinkedIn (LNKD) profile hinted at this piece of news.
Broxton, due to its new CPU (central processing unit) and graphics architectures, is expected to improve the performance over Braswell. This will enable improved low-cost PCs.
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