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Intel’s new CEO and Atom chip face uphill climb to mobility

  • Posted on October 25, 2017 at 5:42 pm

Intel announced earnings Wednesday that were in line with expectations, but the chipmaker is facing a daunting future as mobile devices further erode the PC business and its Atom chip vies for customers.

“With its new, low-end Atom processor, Bay Trail, the company is gaining traction in cheap notebooks and tablets, but we believe this is at the expense of higher-end core processors,”said Piper Jaffray analyst Gus Richard. “Intel is late to the smartphone market and we believe high-end smartphone sales are starting to roll over. Intel is far behind its competitors in terms of cost and integration in smartphones, in our view. We do expect Windows 8.1 to drive a corporate upgrade cycle next year, creating a bounce in PC demand.”

Intel’s new CEO Brian Krzanich said organization, strategic, and prioritization changes “will drive greater emphasis on our Atom-based products, bringing the full weight of our process and architectural leadership to the Atom family.”

Asymco’s Horace Dediu illustrates the dynamics of Intel’s situation — he calls it a “PC calamity” — which is similar to the situation facing Microsoft, a dominant leader in the PC era facing a steep uphill climb in the mobile era.

In the last six years, nearly as many iOS and Android devices have been sold as PCs and mobile ARM devices are selling at least 2.6 times the rate of Intel-powered devices.

(Credit: Asymco)

“In terms of installed base, a computing category that did not exist six years ago has come to overtake one that has been around for 38 years,” Dediu wrote. “The calamity for Intel has been that they have had no part to play in the new category. Perhaps that is because they had every part to play in the old category.”

As you would expect, during the Intel earnings call Krzanich was optimistic about the potential for Atom processors to get traction in the fast-growing mobile space.

“Look at it as a constant pushing of the accelerator down and the thing just gets faster and faster as time goes by. And so you’ll just see more and more strength of that Atom line as time goes through here, and it will be kind of just, you’ll look back and say well it’s obviously that the Atom line has truly become strong and they’ve got share in the tablet space,” he said.

Intel trimmed its annual financial outlook from low single-digit percentage growth to to flat year over year.

Lenovo embraces 10.5% PC Market Indonesia

  • Posted on April 3, 2017 at 4:02 pm

JAKARTA – Despite some predictions stating the market share of personal computers (PCs) will be eroded as the onslaught of tablets and smartphones, but Lenovo still showing significant growth. Company, received double-digit market share for the first time in Indonesia.

According to IDC Asia Pacific, Lenovo grabbed a market share of 10.5 percent in the first quarter of 2013 (April-June). This shows that the company recorded a growth of 4.3 percent from year to year.

“Indonesia is a key to our market. Because the new computer penetration five percent, and its market is still huge. Many Indonesian people are accessing the Internet from mobile phones and even still go to internet cafes (cafe),” said Chief Operational Officer of Lenovo Indonesia Sandy Lumi

Regarding the position of the other PC vendor Lenovo, Country General Manager Lenovo Indonesia Rajesh Thadani explained, there are five vendors that play in the realm of PCs globally, the Levono with 16.7 percent market share, Hewlett-Packard (HP) 16 per cent, 12 per cent of Dell , Acer 8 percent, 6 percent and Asus.

“Lenovo is the market leader in the realm of PCs globally and we will continue to innovate, and launch a variety of strategies to improve growth,” said Thadani.

Then, in addition to aggressive in PCs, Lenovo will also continue to expand into the realm of PC +. Based on reports fiscal ended March 2013, the company grabbed 5.9 percent market share for ‘Smart Connected Devices’.

“Lenovo is currently the number two smartphone manufacturers in China, as well as tablets, the PC market in the world big enough +. Inevitably, 10 percent of our revenue comes from smartphones,” said Thadani.

In Indonesia alone, Lumi calls, PC sales reached 5.5 million units, 11 million smartphones, and tablets 2.9 million per year. “Smartphones grew 10 percent and in the next two years is projected to surpass sales of tablet PCs,” said Lumi.

“Market + PC as large as the PC. Due to the large number of people in Indonesia. Yet again the majority of them are still using feature phones and smartphones will be moving to. Even though with tablets,” said Lumi.

Brand choice
Not just grabbed the biggest market share as a PC manufacturer, Lenovo has also managed to become the brand of choice.

Launched various marketing activities to make consumers consider using a product made by Lenovo. As of May / June 2012, Lenovo grew from 8 percent menjadu 20 percent in the same period in 2013. As a result, the ranks had been pushed up to 8 managed to position 4.