Intel’s Brian Krzanich told the Citi Global Technology Conference that while ten years down the road the company will continue to get a bulk of its revenue from PCs and servers, a significant part of its revenue will come from mobile, Internet-of-Things and other emerging market segments.
To do that it will need to come up with some ultra-low-cost devices that will still need computing and communications capabilities.
That will mean working out a way to “take our silicon leadership and our architecture down into we talk about parts that may only cost $0.50 and have comms, CPU, everything down there and can run on small batteries.”
Although this is the normal “internet of things” style talk, it is the first time that Chipzilla has given the world its coming vision. In this case it is a super small chip which can run an entire computer’s services for less than 50 cents.
Intel has stayed out of the cheap chips market because the margins are incredibly small, but it is starting to look like it has realised that the Internet of Things will mean low-margin, micro-controllers and other low-cost chips. This will make it difficult for Intel to maintain its traditional 60 percent mark up.
Krzanich said that in a decade, Intel is definitely going to be a broader company across the much broader spectrum of computing. He is also not predicting the death of the PC or the server any time soon.