These are unit market share numbers, so will include large numbers of PCs - both consumer and corporate - at price points where Apple isn't interested in competing because the margins are probably too low.
I suspect by value their share is far higher and their % of profits is even bigger.
The strategy is very clear and it's the same as the iPhone. Dominate the high end and capture all the profits. Of course gaming is an exception to this.
The bad news for Intel is that they make their margins on high end CPUs too.
For Intel and AMD there are two different questions: will Intel fix their process technology, and will AMD get access to TSMC's leading nodes in the volumes needed to make a difference to their market share?
Laptops are only small component of biz for CPU chip manufacturers like AMD/Intel. AMD is traditionally weak in laptops and has not decent market share ever. This doesn't impact their business that much (Intel's numbers are not down that much after loosing Apple's deal after all)
AMD and especially Intel have high margin server CPU business, Apple's entire value prop is low power segment, their chips are not designed to compete in high power category and they will never sell outside their products offerings as only chips . AMD also does custom chip stuff like with PlayStation 5 etc, none of that is threatened by Apple.
Servers Chips with ECC support, enterprise features and other typically high end chips have very high profit /unit lot more than even Apple can make per chip( maybe higher % for Apple, but not absolute $ / chip). Apple is a minor player in the general CPU business.
There will be of course pressure from OEMs who stand to loose sales to Apple to step up their game, AMD/Intel are not loosing sleep over this in terms of revenue/margin yet.
Sure Intel have a server business but that’s smaller than client computing and revenues there are falling.
I don’t know what the precise % is but if Apple have 8% market share by volume their % of Intel’s client business by value is much higher. Losing a growing customer that represents that much of your business is not a trivial loss.
Of course this is all part of a bigger picture where falling behind TSMC enables a range of competitors both on servers and clients. If they don’t fix their process issues - and they may well under PG - then this will only get worse.
The Client Computing group is larger yes, however few things to keep in mind
1. they don't split revenue for Laptop market alone , So hard to say the impact of laptops (especially Apple) itself on their revenue or margins.
2. Also CCG is much slower growing than the Date Centric Group(DCG) business for Intel in the last 4-5 years as to be expected to be in the future as well.
3. The Apple deal was likely their lowest margin large deal(perhaps even loosing money ). Apple is not known for being generous to suppliers and also Intel was in not in any position of strength to ask great margins in the years leading up to Apple Silicon, the delayed processors and poor performance and threat of Apple Silicon had to have impact on pricing in the deal and therefore their margins.
Not saying that Intel don't have a lot to fix, but it also not that suddenly they are in much worse position than say last year.
Sorry, disagree on all of these points. Intel has new competition in all its highest margin businesses. It’s not going bust and may well turn things around but if you look at the PE ratio it tells you the market is pretty pessimistic vs its competitors.
I get (and respect) that you disagree with my argument. However only point 3 is inference/opinion that we can argue on,
1. and 2. are just facts from their annual report, maybe there is scope to argue that they are not relevant here or doesn't show the full picture etc, or are you are saying the facts are wrong ?
On 1. and 2. I’m (hopefully respectfully too) disagreeing with the thrust of the point.
1. We don’t know the precise split but we do know laptops are a very major part of their CCG business (based on laptops having majority of PC market share).
2. DCG revenue was down last quarter and the business is facing major competition from both AMD and Arm so I don’t think we can base expectations on performance over the last five years.
I suspect by value their share is far higher and their % of profits is even bigger.
The strategy is very clear and it's the same as the iPhone. Dominate the high end and capture all the profits. Of course gaming is an exception to this.
The bad news for Intel is that they make their margins on high end CPUs too.
For Intel and AMD there are two different questions: will Intel fix their process technology, and will AMD get access to TSMC's leading nodes in the volumes needed to make a difference to their market share?