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 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.